The Procter & Gamble Company (PG) 21 Apr 232023 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 Vice Senior President, are Relations. call Jon the Chairman of Chevalier, me President and and John on Board, Chief today Mueller, Executive Officer; Investor

grew integrated strategies of March drove strong all the -- in in to the sales aggregate seven market out our results quarter. share steady, January and Organic and accelerating superiority is investment of are enabling across Global six in categories our XX of holding Execution in savings sustained productivity regions. brands.

of against growth package, EPS guidance free enables consistent: strong offerings Progress turn vectors for superiority consumers value. for core flow Superior us in growth In-market is communication, shareholders. return to and plan retail to execution product, guidance pay benefits and for increase continue and productivity. cash our shareowners, all and and cash to go-to-market our maintain and across partners P&G sales and organic for to five

from quarter to reduction modest the X%. more sales Organic added XX portfolio in declined X was Pricing Volume quarter. Russia. X points third grew headwind positive a to sales Moving point mix numbers. and for growth than a contributor including points,

Care of mid categories Oral Care each Care our Family Growth and Care up Home was organic and product digits, and low singles. Care, each teens, Feminine across digits, high double Skin single Grooming, XX up and Care with based grew low Care Health Personal Baby grew grew Fabric Personal was broad units business singles, Care sales. and growing Care was Hair

focus unit Organic markets six were Europe modest with growing X%, up was X%. for quarter. including sales. were the grew seven geographies regions broad across based volume in organic sales the Focus Growth markets of growth. X% also up U.S.

organic COVID China sales versus were improves. prior recover the X% and from year, consumer lockdowns up confidence as to Greater as market begins

We increases portfolio China mid to consumer mobility categories. continue growth for our the Longer-term, to to expect further singles coming recovery underlying we rates quarters. of as market expect return over

markets up and XX% with Europe up Enterprise consecutive markets five This organic fourth America low sales Latin in teens. double enterprise the XX% in were which is nearly digits sectors up enterprise quarter grew markets. all

aggregate growing was holding top with in Global value share combinations our year, line category share. with or of country prior XX XX

still the all Excluding was share of U.S., Russia, global value XX up share growing points share versus X share year prior the outlet up the holding XX modestly is value was basis year. quarter. in of prior XX a volume down XX growth points. market U.S. year, In points that absolute points in prior is eight versus basis versus driven up consumption volume or categories with basis by

growth to be Health Personal easy leader power and leverage with X innovations. delivered up squeeze Care, brands. the ongoing we've continues growth in be dishwashing, more and U.S. Platinum share Care has continues extension growth driven in led wash. Dawn Plus successful Strong deodorants, native share well has strong the auto and point strong from than a the body into to as wash Vicks share on Metamucil and been brand Pepto-Bismol by innovation growth Cascade as share and Personal in in

are Care. GilletteLabs driving grooming. The in razor, strong PODS demand Power consumer new Europe, growth Fairy Fabric packaging new in category and and female Home market strong and Ariel Care. the is growing four-chamber are intimate In exfoliating building share driving in the cardboard male Platinum grooming Spray dish innovations upgrades

share progress Core $X.XX, On core a of $X.XX increased year. currency foreign neutral XX%, cost X% earnings bottom-line. good per and share headwinds up EPS in Moving the basis, quarter. we prior were to the per versus exchange faced as

as SG&A Productivity inflation basis Core were help increased to basis of gross the basis a XXX margin margin offset partially quarter. increased improvements points and were point expansion XXX points, impacts. investments points. XXX Currency-neutral basis operating XX by margin core operating

productivity flow cash was free at XX%. Adjusted

shareowners, return We announced billion returned P&G $X.X X% a increase dividend in the Last billion dividend. This our consecutive XXXrd annual repurchase. the in in shareowners. consecutive has reinforcing year increase $X.X paid of our to again billion cash and week, approximately commitment to $X.X share we XXth is dividends a dividend, and to cash

what In environment, the operating quarter. continued summary, for bottom-line good cash across a and is cost against third and challenging results still top-line,

that with excellence, to creation. continues four past are value balanced strategies and that growth and strong Our results executing integrated for enabled the the operate have team years over the foundation

and portfolio the bar irresistible standards superiority and again across the the in are nature daily significant choice. providing on use value, performance many cleaning, A a product, package, retail in in health raising to benefits strategy. communication, categories plays we brand dynamic commitment hygiene where reflect of products, vectors our and to this of execution Ongoing role investment superiority brand of five

to superiority shape industry areas for strong and the margins Productivity offset generation, create new technologies approach an a cash improvements and future. willingness our currency in deliver in operations fund that and constructive of to of and trends investments adapt extend cost change, will all disruption, challenges,

overlap against seamlessly that more demands organization new with accountable empowered, around other flowing each priorities and our world. little supporting redundancy the to to increasingly is or Finally, agile an deliver

are of strategies, integrated in environmental are areas to improve not four and investment or further strengthen There to reduce and the creation build necessary equation. continuing acumen, digital superiority, costs X.X, enable organization. our employee sustainability are Supply value elements are the to we Chain and value These to execution separate strategies: they driving new

productivity, which executed on well, sales on choices profit. They superiority, and strategies. portfolio, are When build interdependent share, and Our grow disruption turn and strategic constructive each grow markets, in they other. organization reinforce

irresistibly with consumers and double is integrated on superior path growth starting the top- continue to We these deliver believe to to partners. best down that strategies, sustainable to propositions to commitment retail deliver bottom-line forward and the

guidance. moving Now, to

we ability with organization's As to strategies remain we in are end them the of confident We fiscal towards and cautiously execute work the the year, our optimistic. excellence.

continue to the foreign we in as and consumer forward. sustained expect and environment, pressure move expect exchange volatility We macro in more costs and

On and improving, on with relatively China volume the our pressures resilient, remained consumption. heavily whole, with U.S. Europe trends more consumer inflation but markets in weighing

and to to time. the the positioned well over strategies think through continue We have volatility we've made investments we've chosen, executional us focus this excellence on manage the

spot costs, have now Raw Based estimate year. stabilized a material we supply and latest contracts, of versus headwind and few remain significant fiscal current billion the commodities fiscal headwind $X.X in a last and largely packaging still over months, last but inclusive after-tax inflation, 'XX. prices on

against also us. on exchange and now headwind is significant current moved a have year. Foreign a forecast quarter rates, $X.X last we fiscal after-tax since Based year-on-year billion impact the rates exchange to modestly

have the to roughly them now we prior moderated be throughout in with and Freight year. expect year, costs line

Combined point now $X.XX to headwinds estimated or XX for headwind EPS per year. billion a from the growth items these are percentage $X.X share, at approximately after-tax,

wages In to year-on-year addition expense. interest these facing benefits in also are net higher and impacts, higher and we inflation

portion with We of savings. offsetting price productivity and a headwinds increases cost these are

improve to flexibility. to invest are irresistible superiority supply investing in continuing are resilience capacity, our we and We and

cash. and the results sales on three outset, confirm our EPS quarters guidance and us in raise ranges our enabled have first our to over strong noted the outlook As organic

which respectively. a of for over X%, increasing to put approximately to X%, growth were We the for This sales our in are years, would fiscal fiscal guidance range X% growth last X% four 'XX 'XX, from from X% fiscal the averaged through with organic and X% top-line year. X% 'XX X% line we've

bottom-line, lower input in drive exchange outlook increase to Significant our costs range. plus fully On and foreign reflects to we're of as the expectations guidance keep of current This of core end as the from maintaining the available. X% -- earnings and value our also per value in share our toward creating our we to range are headwinds line superiority prior remain invested investments opportunities year. versus this intent strategy growth

XX%. forecast cash shareowners and $XX $X.X to in $X to this pay in combined productivity flow to repurchase year. billion fiscal free of nearly adjusted to billion billion dividends common continue now return to expect plan We cash $XX $X to a to of billion stock, We billion

based are not closures current exchange growth increases, rates. market additional commodity this cost estimates, or and within weakness stoppages on foreign currency prices range. This store commodity production anticipated Significant outlook geopolitical is guidance disruption, major

To continue dynamics. conclude, we to volatile face and consumer macro highly

see foreign exchange, to high operations. chain and input continue historically issues, also budgets. impacting upstream high geopolitical We consumer and from the inflation inflation our in in supply Headwinds year-over-year own costs,

investment our believe patch to As a is business. we the reason not said this through, in to a grow we reduce health of long-term before, rough

and that has strategy We're delivering doubling down been on strong is results. well working the

investments, to and growth. to fully remain invested driving We continue challenges mitigate input We step and cost committed bottom-line improvements our We growth to top- productivity balanced remain forward. to in business. fund deliver

With that, we'll take to your be happy questions.

The Instructions] question first ahead. Barclays. Lieberman comes from of Please Lauren go [Operator

global Great. something years a three pandemic talk realize. this this last, during to all you've the I because change Thanks. seat. two-and-a-half, challenges, back wanted the significant then, Good been chain really quarter a was And able about guess, took bit everyone. seen productivity supply I morning, productivity, what and that over in the to understandably

the in where run rate on in of to marketing, I a if some, catch-up on how consistent you per things list, so se, about productivity could maybe acceleration interesting also but actually reinvestment projects get have there thinking at were sort to like, that we forward? been productivity again, investing And there's, be of productivity an that -- marketing you've if piece. of should context at, it's on side. the been So, There's No is where throughout? was elevated curious need the up, no something able going catch there's accelerate the think I so

to curious Thanks. that. hear be I'd So, about

Great. Lauren. Good morning,

now gross levels I or equal to to said, we've that equal up pre-COVID. close delivered to think, we as right are return those that to catching you are savings

be line capacity ideation are more this identify or teams and available And hopefully, well. through opportunities. engage mind created inflationary have to we cost us our of savings as be to able new as more new suppliers get to projects and period, to We for space to able qualify

we've few Supply Chain As Investor X.X. by we next years, for talked on Day, see driven on the productivity runway our

to that will the superiority, is model. to buying to between automation and And a million We terms year believe continue have of talked media, in fund savings digital in really hold and programs with million innovation continue the of allow my and Those that capabilities close estimation, around between savings which can about scheduling to capabilities. we will to $XXX reinvest we $XXX media, productivity, programmatic of and us intent levels, world. to delivering those from us allow in generate both will about the which billion initiatives $X.X pre-COVID

So, question media. your to expect pre-COVID up, expect a net I savings, structure but disproportionate would not return directly, catch cost would of answer steady both I to a and levels the

agree. I

Spillane The Bank next Please of America. question of go comes ahead. Bryan from

that? morning, Good one a give just I So, interest clarification, the actually I guess, something to question. us even expense, interest of operator. And in need as had on we little more up? everyone. I Thanks, you the then we clarification that look is just models guess, net a incremental kind bit going The again, $XXX quarter? color our can million expense past is of, contemplate and fourth

I more not immune are credit Yes, we to is, that. getting in right? are morning, terms mean, and Bryan. Markets obviously, Yeah, of it expensive

would continue year. I $XXX year, the to go next [BT] trend into we've the quoted million So, expect this to (ph) up for

we're not yen. in Now U.S., only to but positioned well pounds in also we because peer able are the euro, and group relative in still in borrow

increases, to they us very those competitive. so next nevertheless, not into we're continue year. go keeps But that will immune So up to

of not just that's increase. understandably, commodities. that to This cost increases, mentioned primary continue the cost We've on is focused driver perspective which in one the And our about and expense. it's piece increase only there, benefits, interest remarks, We've Jon. wages we're Bryan. seeing. discussion prepared been of Andre because talked just But his

Andre that there we So, us all I happened and but to still, what's as to move here, against said, working we'll confidence we're are against encourage forward many realize gain next fiscal headwinds that through would work to from continue just year. as

Mohsenian Dara go Please comes of Stanley. next The ahead. Morgan from question

guys, you hear can Hey me?

can. we Yes,

strong some the quarter pricing, on progress in margin cost full bit freight first savings in So, your year-over-year the side, the assumptions outsized up were Obviously, time significantly years. with of couple they for assumptions gross the commodity than sequential the were also a and year nice previously. you are a better but and

obviously, what's your see that to let marketing quarter, to profit bottom-line? that versus a improving gross it think margin the So, could sort start on you drop to on both. the do going we get sense reinvest back sense upside, with just to perspective about if just you of of this want get But wanted a magnitude environment, gross sustained how to the forward? into This upside bias

you do And any forward if quarter, the going sort of spend? on you you second think expected? part, I incremental you comfortable opportune or strong did can slip you're Presumably, ROI ROI getting what are but may how in a and obviously, this on higher originally a that about spend to be that ad

value the modest on Good Actually of to we for have morning, after we're negative And margin us on cost opportunities the period we've to in will long expect impacting Dara. the this helped continue to quarter, side. side. as us the heavy gross look a productivity top increase gross encouraged very progress numbers creating margin reinvest. We to done of would headwinds deliver pricing first by that

into we they consumer is continued those sensitive the all more, that execution. We create top-line towards is value that very tough retail to we value serve grow investment are across firmly going across offered, environment are even and in share goes package, why our And communication believe and equation being of believe are the able able hold because the a and we think, volume well at growing, pricing as product, us and reason value the innovation going range I superiority-driven globally market of we the share are is vectors forward. the to to why the reason

so, we do will and we disciplined will but So, ROI-driven in a a very the flexibility do as way to maintain say. it in you

every ad question, our more efficient As the becomes more can and to media, digital more increases that of ROI to both spend. be in-house your as with targeted, we to of the dollar capability of second buying part spending scheduling ability

the will with our So, it actually growth of growth, concept cash end model. day, between spending balance media and investment the makes in stick we value attractive. the top-line more and growth to of At bottom-line maintain ongoing creation generation model

commitment back I building agree which and Just points, I on to want our to this of balance with, to notion fully Andre's it. come

about talk we're times, it's of Some many how so probably about understand you repeating, have me heard this worth thinking you but things.

to to our or we gather, with an shows each through from objective entirely unrealistic. our which it would the total through chart the we the leadership return, every team in is assume view We bottom-line. believe top X% that quarter, shareholder And to and what have use do that entirely grow entirely a you we sales share standpoint the top-line, organic which every time top-line you'd have through have is to deliver can which

that do it expand to per you'd try you you XXX basis could margins to entirely the assume through points year. If bottom-line, have

us XXX in So equally five years, it's taken points, build XX margin points unlikely. margin competitive XX where years a industry highly to

continue It's which see we to home. only time. top-line committed the on of very with waste with margin going if vein. no modest we're We're growth bottom-line And of and successful, driven time." matter top-line, you'll by to see -- proper expansion. and in growth operate that is a driving way are bottom-line, and little no have use a get just trite of investment levels I bottom-line. saying Bottom-line margin occasion, top-line expansion both we a to So, that "Top-line to we

that's of to thing low-hanging return, was what or One of to of about, we ROI, simply a the last lot though talking advertising Andre believe, hard on maybe addition out point have, there. rate fruit in

very reinvest target into that's that many categories reduce reach. our good are expanded very a we of levels activity happen. things frequency, can not ROI high we wasted reach, when And where We have at

last just reason in you've the no As point this that not to quarter, And but approach change for by seen, way, the years. time. this four there's at

The Powers next Bank. Steve question of go from ahead. comes Please Deutsche

and good thanks, Hey, morning.

and one but just mix expecting. this balance your that is to better I there. our confidence as reinvestment is, comes there's out we've So, we as admirable about. overall both can your structural And everything, just expectations, which for volume implies elasticity price On roughly than with and least sure continue? at in you in the guess quarter I China question came delivered you think levels were obviously that, upside, But talking rate service been some have relative back seem as the improving, hand, tailwinds uncertainties be line

so, confidence is on And little versus maybe I and where confidence less overall guess, elevated? a just perspective that bit of your more

try a you of is we balance you as the here yourself between decline But expectations. said. better and expected, have giving the would in I'll you morning, basis Good letting volume ahead Steve. perspective terms careful on get not than of global

elasticities on basis. actually a an at if we stabilizing. Our aggregate global And remain look consumption markets, favorable volume you see

roughly volumes would our X quarters global have previous you seen X categories to So, in across points down points.

recent read, which level the around XX This moving with volume. also market some That's points. pricing volumes base. month, probably China exclude And into more one is of were In flat. returning our it's if Russia, most actually is you basis and past down the with growth, to

see as it's some becomes don't level continue we'll if improving volumes, overall but annualized, of would certainly market be that I neutral. going So, negativity know pricing stabilization. more expect of sequentially. terms see in to to I we'll

remarks, over we the XX where being we Within volume points as have had share, basis we're we present volume important we pricing superiority as were months. all taking three and that, I channels value points consumers believe our able comfort grow that enabled, to the market, we a by global past in are said, think in able want portfolio, in which strategy, to that strong significant share prepared despite In share shop. tiers global taken, volume hold fact has vertical most our and biggest to both price and we our and

So positive that's side. the

see X% On X%. was focus delaying that private negative continues to very the and private there. high-pressure And label label. negative increasing is continues it able environment. to We range into volumes European been markets, trading private We've increases. side, of Europe differential under contribution pressure be consumer sales a branded price pricing between a grow is but with consumer be to price The the the as in in the strong competitors label

to going that's the I volume continued So headwind, be from a think, side.

balanced. think our Overall, is outlook I

to we be but value said, market return there. volume on few will that we to As has to before growth positive component going a get and expect to to we there side X% a the take it X% forward, quarters

next The Grundy Kevin from of question comes ahead. Please Jefferies. go

thought Great. I a Thanks. China spend and Good strong and another could congratulations on moment of reopening results. maybe morning, there. everyone, we set on the

China Of market U.S., only that so second in see behind importance we sequential guys, continues the sales, largest sequential market encouraging, the up progress. being including that course, of X% which given retail the the to show is cosmetic improvement, you for

that your consistent digit You've mid-single longer been about term. of target growth market for

potentially the you on you that on what more bit how However, improves. and perhaps comps as level it at comment growth out? least see here of broader some of for at retail and exceed also intermediate the rebalancing plausible recovery, in year-over-year views in easier then potential then, seeing that China? the maybe demand term the that given consumer And offer you. you seems playing a Thank pace inventory Can some you're

I might help three to Jon. that over I'll thought in to partner China of authorities. with just and share are and We leadership of it It we wonderful government numerical the briefly doing We time perspective. to it with a organizations, time more spent spent tremendous team spent weeks. in homes. course, make various is week This was to Kevin. retail And to our consumer contention in able time their last stores than our our leaders reconnect spent Hey, the more there. give trip in We their to But a Andre job. myself were large hand who a offices. with some

having details, and the bottom-line I a was and having into positive getting expecting there very many the of much even, I'm ago than worked all without kind there. and was years conclusion lived more one, And fan China a

expectation has exceeded. my were high started So, and already those

along and that, going way. the restart. said call, last ones that on talked is Having of turns, And a be not and vertical to we the this the twists number be there will you've including of a about some this mentioned

constructive. China in As expect the remarks, Andre continue a contribute level everything said to meaningful prepared middle- long-term. But over reasonably looks we his at and to to positive

you have perspective do on that? Andre, other any

No, it. I think you said

the significant other business we're yet I Chinese is travel us That to specifically. in the seeing SK-II negative any for consumers retail. think is not return a component of

we So the X% only I positive trend at that, hopefully, would future. other we the as near sales Jon see we recovery the very that I a think That's have quarter in what said, with more organic upside is consistent expected. But think there have. the in

of next Evercore comes The question Please go ahead. ISI. from Ottenstein Robert

Great. Thank you very much.

Just then a quick my follow-up some clarification or on of question. real numbers the on and --

was clarification on margins. is a think but So, gross sales, drag slight a positive that was the it the I mentioned on mix you negative impact

Just that. understand like to

then, really if that go you consumer, more U.S. question detail on an focus And my and the the you consumer. saw improving mentioned business U.S. you into U.S. is,

U.S., quarter? update be seeing, the your there of appreciated. pricing any quarter? you're how in And much impact kind go granularity Thank any kind would on that any in you. on around And to the the How saw then, that? of So, next more is you clarification an that in much

Robert. morning, Good

sales margin that product mix and here gross connection the from mix. effect here perspective, seeing the On is you're

P&G that So, to higher-value trade consumers consistently actually our the past quarters. seen over tend when they portfolio, We've come items. up into into

a that mix into sales, a positive on they -- So perspective from up as top-line. higher the unit that's trade impact

profit versus unit for unit about margin higher them. some for gross about lower think When unit you incontinence, liquid but lower, unit sales sales adult percentage care, items the detergent, is higher. have unit percentage when in margin higher fabric think higher, you also of dose those example, profit, single gross slightly But

from the bottom-line mix percentage top-line a but and both the it's is effect lower. standpoint, So, the positive

U.S. is holding think well. up I consumer,

we the still brands. indication any said, our is business on we P&G is As that see choosing consumer that

volume. volume We still that growing is on are share down in market a

are growing volume. absolute We

XX value points XX share fairly goes consistently So, basis points periods. share across goes, value basis

past a we at no good material here that also stable see see over really private months, one, XX%, six, movement don't indication three, We label nine trade any is shares which the down.

we're closely. to we again watching lot Now this superiority. very And a is by driven very that strategy of believe our intentional drive that

element We increasing, reach continue to Continue ensure innovation. invest to retail packaging in we Jon We're of brands our work our where product good our as to is partners helping we that continue in which be. is and terms innovation. would also invest return. in out and of as call as presentation overall can see market. We'll payout position said, online supply and and in communication I are the frequency good it on-shelf in-store to is with stable Last a the availability,

carefully. is we're watching but stable, the think I characterization, So,

which U.S. there growth there you a quickly. as point point, realize to where pattern. the you sales strength consider you delivered couple growth continue of here as key both U.S. team top-line that opportunities within a additional at share are are volume remediated and if of growth, risks sales still categories that not we as consumption as opportunities X% fairly there number, to look organic Andre as healthy and risks, and But one relatively the the supplying -- just while quarter, share be share have the well in full demand. value those consumer, That'll and are said, the we measures, And -- the

from comes Peter question of ahead. go next Grom Please The UBS.

Thanks, operator, and good morning, everyone.

the about changes and outlook. in to wanted I So, ask freight the commodity

comment at you out Thanks. months? sticky? the evolving to just as give XX Where to And expect but inflation Where a that to next headwinds 'XX look you we don't point, moved maybe see just moving still what these nice conceptually quarter over lower, is straight Second costs that I while within this maybe on Can which sense are bucket? costs XX seeing have you're you see. how are lower?

the we've Good is Peter. in morning, stable mentioned as at prepared this Freight relatively in point remarks. time,

driver freight is historical prices returning forward, but load We fuel change year. to, transportation wouldn't costs at a that any reflection with expect norms. expect line major a given roughly least ratio to in I I think, all our we're of situation Again, more and and with other I prior to warehousing and capacity dynamics, stable. going more think balanced a be And

From a continue see bag. we to a commodity basket standpoint, mixed

have We resin-based in some help commodities.

We that have moderated when both our mill in shutdowns think about usage for pricing. some by are maintenance, on high--energy pulp, unplanned. materials, help all But in all side, those about caustic though you increased and you when is soda, other the planned think ammonia, of

consistent is So, moderation really basket. not the limited and the it's across

thing in million the only we're $XXX this So, seeing tax after at is point time.

We in also continue to see upstream the supply chain.

to their labor is ongoing. inflation, that discussion their input and be a Our suppliers cost continues that recover to try to increases, continue

of CAGNY, I XX months. roll as in months, those over think mentioned we XX some contracts

these and So, our hold our for year we year. to there's underlying always this expecting, next as based do, guidance Overall, will -- that's will what's these and for discussions we're planning be headwinds continue with and rates us. spot on,

comes Morgan. of Andrea question next go J.P. Please The from Teixeira ahead.

Thank you. Good morning.

respiratory in from the in Beauty? how be about in benefit and How other we segments? seems lapping the should should the upside other thinking could but recently, healthcare? upside thinking think had we the the you pandemic you digestive spoke also triple benefit retail you briefly Asia. It side, how Andre So, And we about both Jon on should about being and be travel an

we as clarification. just And -- a

put potentially we are as you seems more potential rate be organic risking is as the fourth in the it -- it points there? basis component even organic, on deceleration a price much. Andre bear of maybe we so in your on the basis, in volume if still in and only commented, As slightly should terms you'd But Thank X%. course, of in embedded a the mind, sequential you volumes, a quarter is Europe. a thinking better a XXX But exit though of so in to delivery would better quality X% the be flattish down in maybe flat, have

Andrea. Hey,

Hi, Andre.

of questions, the that the reopening. in SK-II specific still see Japan, potential as SK-II in are back saw yes, travel held Overall, XX% outside beneficiary we In X% Mainland, growth On category quarter. we overall we In growth retail. the well China, channel. saw travel of results the retail by recovering But is quarter.

see many we So, improvement, sequential Care takes think, are I and the sector. overall a there will in Beauty but gives

So the to are lot context around that in that world. seen dynamics needs other with on a going be of

parts very the we On there. the nerve to pleased that talked in respiratory, see in team space Personal areas are provide sustained results Health before, of that upside these future. potential. There the very constraints, portfolio high the with Care held many by is growth And we still across digestive, might of we're in be supply some continue care. back we've delivering growth this have side, And which as

have we of again, across a combination XX multiple categories But markets.

a of of them headwinds. time, some do Some in will well period them held will by of back negative be

over be to picture. It balanced and So, by times. will growth strive different parts we of bottom-line different driven portfolio a for continue top- the

time. start is to volume is four, a versus From will important understand for lap price we price increases component the what first to standpoint, quarter

base. had we the in about So, pricing X% of

to growth while expect will will we that in a to near be would volume of stabilization there component negative volumes, growth the So And the the in negative four. still quarter top-line headwind I future. be see that

yet label the as as us negative from is of under territory competition is consumer And perspective. those Russia I recovering, headwind. with European yet earlier, a China in in pressure but being positive still with pricing markets. branded a volume have a slowly following not portfolio lot not the private We mentioned

That base. come still in into will negative would the headwind volume component quarter will four. pricing top-line. I be to the expect a a there's So,

is some Yes. pricing One volume thing just taken to think a that U.S. And remember the too I in the impact we've current of that both Europe. the from data don't pricing. reflects for that quarter potential and

volume but at So, happen -- to I won't looking slowly time, recovery would be it volume overnight. over improve

comes Falorni of ahead. Please The next from question Filippo go Citi.

that years transformation standpoint, the the changes potentially everyone. understand help in gone over environment morning were U.S. how the to company you. Thanks us bought what lot the into question. a you organizational standpoint, if can five, extend navigate a Can help past Europe from world? you the and of good we're portfolio other clearly Hey, you six these for you've Thank superiority. through a some consumer internally of weaker think parts seeing Jon,

Sure. And strongest think The we've Andre as may like can taking have is that some well. it currently choices what thoughts that the the about made that we're of. here strategic approach the approach and I -- is I really

actions indicated healthy very economic or don't very environment, the a For economic change. a environment difficult

drives for economic of something example performance economic where in as environment. think a to well. our categories a a our and downward part importance environment that good DNA. as environment. economic of about in That's productivity A economic The difficult fundamental serves in critical So, brand a embedding consumers choice, critical very us positive superiority environment both and

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from question ahead. Olivia Tong next of Raymond The James. Please comes go

now of similar rounds on or terms to elasticities whether contrast relative Good on draw Thanks. of volume pricing, hikes, whether And that some where compare markets extent just you rolling lap can especially seen I on the versus price some to new your to to Thanks. you're they've where can growth the starting Great. already. the you've still out you're have pricing morning. and what to U.S.? wanted see in is starting previous follow-up stay what -- conclusions you modest to markets changed in pricing, seeing, particularly you're pricing view since

because have somewhat] pricing in into [those gone and Good just and calling visible. (ph) March round The are U.S., effect I'm February -- morning, and across Olivia. out of across Europe recent most

as hard remain elasticities the So, favorable. are I What time. you tell point that it's Jon elasticities remain outgoing to this for stable, us, said, is can what in at determine

We've value want are strong categories communication. Tide risk failure. where value for innovation, support. Every rollback, also Many guarantees Olay price innovation. a pressure. that of consumer meaningful communication. most consumer, is Charmin function linked a the to a Coldwater, it a price categories of function for increase to think doesn't consumers I talked Ariel continued of innovation come Coldwater, And about And continued meaningful investment. It or They is also that as retail they connected our are is are under increases

with You to clothes don't don't want deal your diaper certainly twice to you a and wash failure. want

as across So, think we and maintain QX, that critically is example look lower to elasticities competitive that's helping and is where the opportunities important out Europe see the we of continue favorable for at need the We important to private maintain to It I do that a than you us value investment. what our all an is to The level branded insight equation. value pricing exposed, -- board. call investment I'll is need us in label pace because that most maintain set. of for that us

pricing I and execution of we Where favorable superiority, where strongest see and the market, market U.S. good strongest the growth results, or is we driving the balance innovation of a see the portfolio terms is truly strong example team results strong and execution that. and lapping recovery. we a market think in the relatively in Excellent portfolio both with strong by of but also to innovation compared delivering have

of Chris The ahead. Securities. Please Wells next question Carey Fargo comes from go

in And that a as be label bit price price a to of of -- something how quarters to You've offensive out label I say others type the -- and similar accept also Good Hi. new about in on heard increases is through noted so dynamic? month this the simply number a Europe, course, morning. in that for price you of private globally European you about need commentary context just to Can I bit ahead, could but just play times that much. remain Or of about managing If call. close private in do playbook gap? Thanks Staples. you of guess wide, gaps in it that more think need and from test competition We've do a delaying you your you litmus Europe? do talk level?

Yeah. sure Chris, will then add. Jon I'll I'm start, and

with think, gap I price says, Monday the or of us. This team reality label deal morning expanded need deal the is with. frequently we accepting as every And private and front of as versus they an in Jon challenge a wake the with. need we up to the deal reality is reality extended to

to price retailers. helpful that's innovation, we think So, differential product is to we create able meaningful don't what and to that But innovation on. for that a choosing. forward growth market and that via are superiority, trying path and We to I eliminate the us is strategy executions we're means and and both for the that's the if can helpful generate us. via focused and need create value what we're in-market communication need packaging strategies innovation. consumers to And provide and

the Europe, you that points year very higher We're I our a in in time. environment, encouraging, not a couldn't achieving but quarter, Europe while in last frankly, thus results through seen growth just they're long consumer we've agree well. rightly at as fiscal in more. are if look to last And Andre than difficult far rates

and time to just And It's so, now off. to move execution, strengthen as back forward is not the the Andre time described.

be and need consumers and to delight sensitive market go and with continue But to that and in private our versus first have to branded several as bringing customers need price We've gone the but competition to not we adjustments we to foremost, made gaps, mean doesn't we label, this that. sand. offerings just heads period through we're we've there. from of versus pricing, the That to

The comes Goldman Sachs. ahead. Jason next of English from go Please question

Hey, morning, strong A couple me congrats Thanks on questions. in, good of for letting quick results. just folks. and

pricing. forward? quantification magnitude us you than on level all should you terms when perhaps So, sort in organic first going order of breadth at give magnitude? what on of it consolidated expect together, sales Can blend some we contribution more of And

year-on-year in terms SG&A, But you And kind to SG&A of love a and where see unpack the What's the secondly, -- both in back really then, more overall sharp extra dollar money the change just Can is for investment sequential where the up. going? reinvestment is? step bit of sequential business.

as be of the seen And sole digits, it's would for increase. the morning, to give tailored you a the before. good I Pricing said past, you fairly not to latest think, the is contributor Mid-single Jason. have market latest pricing pricing in top-line, consistent the is I think magnitude, the we will round Yes, what over very move ballpark but top-line. time to contributor back would I with to but

needs categories contribution need quarters find So, volume to the mid-single to modest to what return here next we few -- a pricing the That's and market these towards. growth balance to we're growth. working to over return and digit

are driven of look, driven when on. by line, the by lot double They market reinvestment are innovation On right initiatives down so pricing is the SG&A our to timing, in a timing.

up, would management as So, we our had earlier was our across we the as how What discussion brands see -- push team Europe is to to drive we I in when can how take and in is do the especially communication what really and you Europe. we push, terms and we double click tell media side on pricing our support communication can high sufficiency and of hard innovation. value a latest to

a area attention you So I one last paid months. three, the we that's the four over give will lot where of

back prior time, it. this not quarter, we you that I invest our obviously, point that situations in more quarter, as determine --- investment, would a And, any level weren't we're And where just those able there an as you can of add supply demand. of leaders spending that were last mental you you continue fully making time. supply increasingly into And one -- did in category thing. get we the spike are to and we but level as in awareness environment you at you it. the can't now because in supply fully support go resume that to to just situations investment It's that better

to the that described. addition in dynamic dynamic the of part Andre a that's So

Astrachan comes ahead. go Stifel. The Please of from next question Mark

U.S., and superiority of irresistible strategy you globally U.S. in you thanks, if Yes, question think about you're sort I to is if you relevant. see sticky the look Wanted morning share do volumes? good that gaining talk of could this terms two-part of related but How at ask everyone. we suppose Obviously, more

So, higher-value in exist you're better that of stickiness prior a So, consumers work there's perhaps cycles. kind then effectively didn't products it to suggest sets, that right? trading here would than peer

it through how So, going how curious be a forward? and about from you that standpoint flows think I'd volume

they're down a just And best standpoint? pantry the to Is volumes, later imply guess are volumes reloading the sentiment your on Thanks. consumer and as Does unloading? that when as at destocking, time that a potentially related to what's from why that if consumer improves?

Mark. I'll first crack. take the Hey,

irresistible value A, of concept the B, is tiers. superiority is: dynamic must-be and across think relevant and I dynamic;

means. and some as So, of double on down that their careful of more consumers spending to example, our our value for with what superiority tiers just get we means need view lower

make we consumers. we the stand because on that example, we're if label to own look private price those diaper. value, U.S. So, innovation from now that you we in to about on that communication Luvs, as need Luvs, and diapers competing brand about consumers And can for for packaging, the a half to Swaddlers means value have need product, is of and its retail with a standpoint think sure execution provide which

really that what innovation strategy we on type need get by that we consumer time, if we up. just the trade is It's the So, strategy drives a of needs more over a need. double in follows investment and means default not and wants click so and to it's consumer that stress, the grounded

out goes I think inventories mentioned inventories. what market, period pantry pantry consumers across increased generally with Jon are of time, pandemic, we categories. you've a they, were coming there inventories those of there for the described. see standpoint, pricing consumption this available, If down as the a available reacting earlier, And draw multiple recall From into

because that's effect any major I seen. expect the returning wouldn't I we've think just our to normal So, think restocking, I that levels. part we're of

I the into normal it's stabilizes, of pandemic more to As supply goes kind their COVID behaviors. think past, the consumers return

seeing other is we're element more careful usage. The

you media, more twice talk because to our we that's rollback communication, value product every before towel is right? If you're we part explicitly of another ability overall in use less. of day, cetera. made use et absorbent the partially, has Charmin And about aware everyday inflation strength, you the consumers talk and paper about look more When for

opportunities volume it's the of our really Again, driven categories leaders think many levers. elements. there's we those levels. I growth So, in job that as drive is market to And to in have back the sustainable many many many on. our of occasions, use huge penetration regimen Those across our create of around still the focused are categories. in We world usage have We new household can create things we're categories.

The next question comes Please from ahead. Nik Modi Capital go Markets. of RBC

China. perspective of it's "Hey, get a see the choppy, kind maybe you behaving out, I And if on behavioral that check now? the actually hesitating? just recently, just like morning, of kind sick?" I given consumer and know, ground, on consumers quickly were on like they right going I'll Good Jon, are any how ground? just outside follow-up wanted to you. everyone. maybe Are the just there insights, they through thank I on mean, you what Yeah, just

Yeah.

to small I'm and imagine I a with outside being dangerous. don't of There's relatively years, was a now with reemerge. them family. You through. living dwelling, a can to three multi-generations, many going to my I'm what bit in want times -- I of many was for whiplash have negatively aspect impact probably been And told that encouraged

hesitance and questioning. a degree there of is So,

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number It's and presents China negative certainly So, the better we and opportunities X I continue believe couple that than to lot last of in that hold is in a long-term quarters. mid- with. had the on plus us -- a

one, it little take the Nik, but I -- I takeaway, of So my a nervousness is would will near-term there to a think bit caution. all And stop the positive bit is a of improvement. it'll reacceleration be little choppy. is clear But But growth. with

of Please Equities. question ahead. final from Edward Lewis comes go Our Atlantic

Yes. little just bit the just I'll I'd but of on a Thanks guess, performance. very interested be much. ground, cover market I enterprise

Just XX% I be think looking said in XX% somewhat you quarter. acceleration around half. that'd growth Latin an think first this the particular Andre America, in I And at

a just that healthy here of what's behind there's be I'd element price performance in Assuming region. this driving interested that, improved but

exposure region, also of every pricing rate only other pricing there because in healthy There foreign commodities for all pricing is in we're these for exchange of but a element very markets. not like

better positive there. some the in holding consumer our is is The volume markets. of is effect strength I think the than focus much

we've than the better we've I execution think partnerships seen. ever brands than ever is ever the overall strength is better of seen. than seen. are Retail In-market better we've

of think to price the contributing a all XX% I So, drives a with positive that volume and component is results strong component America. of that Latin

Yes.

volumes two markets America, in we're Latin Just Andre largest for Brazil our perspective, high in and saying, Mexico, single as is digit. seeing

I Andre America in as the to take doing a Latin already that away is It's want you to has So, need to pricing. healthy fantastic just who's the I a said And team all growth, don't of nod also a job. sales give combination.

more it and I portends we future. And bit couple And the Listen, I'll what just then, reflections. relates comments to first the and I for in just through completed. a little that close-up been to come think of a about what quarter we've want the with talk and

me, four are going are But thing what's pandemic. going global if be to here's conversation three going called we ago, told People to to had closed. have "Look, going to die. a years We're and this a happen. or Borders you

to get to going be to they aren't you. going to to and get your You able be markets able largest to aren't

colleagues have half sales since inflation out Europe to war foreign of your all. going You're The cost that's is commodity worry, facilities, getting earnings. offices. combination to the into don't War and centers, land largest wipe innovation II. We'll exchange not But have in difficulty your manufacturing World going

find And You're to some to that's get think do How going come you're going people over, work. are you're largest you in dramatic to channel where to back shift doing to that do?" their difficult going of consumers shopping. to your it's in markets all see when of terms

And the my details, you years that?" do Without very to you done. taking bottom-line, that answer that or you top-line, that's through grow three think exactly what all can cash deliver through has team be shareholders would four know return and ago that, "Wow, what well, you to this

ended billion in the sales, fiscal they $X incremental Over profit. in created that last years $XX billion four year, incremental

they and the advancing gross margin of difference, what quarter if investors in-market Now, same sales share, return at level forward healthy share, progress bring look what see, there are kinds and shipment volume to accomplished margin those the top-line delivered. in happened, at last they're that we to strong in savings, our penetration, quarter, growth, our in time superiority spades expansion, of in the volume, growth, you in-household productivity the a based that broad value sequential want just the if of reinvestments things in

I, about both times, and several we've ahead, but Last Andre challenges and point, talked they're I the promise, real.

We guidance are for we're we level and to will in trying do to about has there it But each taking those we're if society And long-term choices. going year. for be, And right And bottom-line we'll best talk long-term make consumers, near--term, continue serve difficulty been, as shareowners. customers, approach are to next other, that more here. a choices our clearly bit as choppy. cause the to approach that that -- going just a it's the

setup about of we've that strategy, mid all across Thank serve I capabilities that us quarters. periods thinking a you're constituents you very But got if longer much. those of But great enable should not and time, mentioned effectively. here, very we're thinking years, set great think a I in that a great to

Thanks, everyone.

you conference. for participation. today's Thank concludes That your

a great may now disconnect, You have day. and