Key Takeaways PG's productivity strategy is central to its broader strategic priorities and business execution. PG is boosting productivity investments to help mitigate cost inflation and currency volatility. These efforts support PG's ongoing focus on driving sustained margin expansion across its operations.The Procter & Gamble Company’s (PG) productivity mechanism remains a cornerstone of its key strategic actions. The company is advancing productivity investments to counter inflationary costs and curre ...

Core Insights - Procter & Gamble plans to cut up to 7,000 office jobs, representing 15% of its non-manufacturing workforce, over the next two years [1][4] - The job cuts are part of a strategy to enhance growth and value creation amid increasing competition and economic uncertainty [2][5] - The company aims to improve its market position by better serving unserved and underserved consumers and expanding into new segments [2][3] Company Strategy - The job reductions are described as an "intentional acceleration" of the current strategy to enhance P&G's competitive advantage through productivity improvements [3] - P&G intends to exit certain categories, brands, and product forms in specific markets, with more details to be disclosed in the coming months [3][4] - The company emphasizes its commitment to delivering balanced growth and value creation for consumers, customers, employees, society, and shareholders [4]

Core Insights - Procter & Gamble has achieved 6 consecutive years of 4% or better organic sales growth, demonstrating resilience through various market challenges [4] - The company reported a 2% increase in organic sales through March of fiscal year '25, aligning with previously provided guidance [4] Financial Performance - Fiscal year '24 marked a continuation of strong performance with consistent growth pre-COVID and during the pandemic [4] - The growth has been broad-based across categories, with 9 out of 10 categories either growing or maintaining organic sales [5] Strategic Overview - The integrated growth strategy is aimed at improving performance across all markets, contributing to balanced top and bottom line growth [3]

DEUTSCHE BANK June 5, 2025 FORWARD LOOKING STATEMENTS Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of ...

Summary of Procter & Gamble Conference Call Company Overview - **Company**: Procter & Gamble (P&G) - **Event**: Deutsche Bank Global Consumer Conference Key Points Financial Performance - P&G achieved six consecutive years of 4% or better organic sales growth, with a 2% organic sales increase through March in fiscal year 2025, aligning with guidance [4][5] - Core EPS growth averaged nearly 8% over the past eight years, with a 3% growth in the first three quarters of fiscal year 2025, within the 2% to 4% guidance range [5][6] - Over three quarters, P&G returned more than $13 billion to shareholders through dividends and share repurchases, marking the 69th consecutive annual dividend increase [6] Market Challenges - Increased market volatility in fiscal year 2025, particularly in the U.S. and Europe, with growth rates slowing from around 4% to about 2% [7][8] - Ongoing geopolitical tensions, trade tariffs, and inflation are impacting consumer behavior and market dynamics [8][9] - Anticipated headwinds from tariffs estimated at approximately $600 million before tax for fiscal year 2026 [9] Growth Opportunities - Significant market potential identified in North America ($5 billion) and Europe ($10 billion) through increased household penetration of P&G brands [9][10] - Enterprise markets present a sales opportunity of $10 billion to $15 billion by driving per capita consumption to levels seen in Mexico [11][22] Strategic Initiatives - P&G is implementing a two-year non-core restructuring program focusing on portfolio choices, supply chain restructuring, and organizational design changes [13][15] - The restructuring program aims to reduce up to 7,000 non-manufacturing roles (approximately 15% of the workforce) and is expected to incur costs between $1 billion and $1.6 billion before tax [15][16] - Continued investment in innovation and productivity to enhance operational efficiency and support growth [12][19] Integrated Growth Strategy - P&G emphasizes the importance of delivering "irresistible superiority" across five vectors: product, package, brand communication, retail execution, and value [17][18] - Recent innovations include the launch of Oral B's advanced power toothbrush and Ariel's Big One Pods, which have contributed to market growth [27][30] - The company is leveraging digital tools and AI to enhance advertising effectiveness and optimize supply chain operations [36][38] Future Outlook - P&G expects market growth to stabilize at 3% to 4% over the next 12 to 18 months, despite current short-term volatility [61][62] - The focus remains on maximizing innovation and investment flexibility to navigate market uncertainties [65][66] - The majority of restructuring benefits are anticipated to materialize in fiscal year 2027 [67] M&A Strategy - P&G does not foresee the need for transformational M&A as part of its growth strategy, focusing instead on bolt-on acquisitions to enhance its existing portfolio [55][56] Additional Insights - The company is actively managing its portfolio, including exiting certain markets and divesting underperforming brands to focus on high-growth opportunities [11][12] - P&G's commitment to cash returns to shareholders remains strong, despite the restructuring efforts [16]

Core Insights - Dividend stocks have significantly contributed to long-term market returns through the power of compounding, especially when dividends are reinvested over time [1] - In the current economic climate of inflation and uncertainty, dividend growth stocks provide resilience and stability, often exhibiting stronger balance sheets and pricing power compared to non-dividend payers [2] Company Analysis: Procter & Gamble (PG) - Procter & Gamble has a 69-year history of raising dividends, supported by a diverse portfolio of household brands, and currently offers a dividend yield of approximately 2.55%, nearly double the S&P 500 average of 1.27% [4][5] - The company's dividend payout ratio is around 64%, indicating a balanced approach to shareholder returns and reinvestment in growth [5] - P&G's forward price-to-earnings (P/E) ratio is approximately 23.6, reflecting its strong brand equity despite recent challenges in sales growth and market pressures [6] - Anticipated costs due to tariffs in fiscal 2026 range from $1 billion to $1.5 billion, representing about 3% of its cost of goods sold, prompting the company to streamline its operations for efficiency [7] - P&G's strategic investments in innovation and disciplined capital allocation make it a reliable choice for income-focused investors [8] Company Analysis: Parker-Hannifin (PH) - Parker-Hannifin has maintained a 69-year streak of annual dividend increases, with a current yield of 1.06% and a conservative payout ratio of 25.3%, allowing for continued dividend growth [9] - The company has achieved a remarkable 10.9% annualized dividend growth rate over the past decade, significantly outpacing many blue-chip dividend payers [9] - Parker-Hannifin's aerospace segment has shown strong performance with 11.7% organic growth and record operating margins of 28.7% in fiscal Q3 2025, despite challenges in other industrial segments [10] - The company is well-positioned to benefit from growth in commercial aerospace, focusing on high-margin fluid power and motion control systems, aligning with trends in automation and electrification [11] - For income-focused investors, Parker-Hannifin offers a combination of defensive characteristics, growth exposure, and proven capital allocation expertise, making it a strong candidate for long-term wealth building [12]

Core Viewpoint - Procter & Gamble (P&G) has experienced a decline in share price, falling 4.8% in the past month, attributed to soft sales performance in Q3 fiscal 2025 and a cautious near-term outlook due to market volatility and geopolitical uncertainties [1][11]. Company Performance - P&G's stock has underperformed compared to the broader sector and the S&P 500 index, while slightly outperforming the Consumer Products - Staples industry [2]. - The company's share price reached a 52-week low of $156.58, currently trading at $162.41, reflecting a 3.7% premium to this low and a 10% discount from its 52-week high of $180.43 [7]. - P&G's performance is weaker than competitors like Clorox and Unilever, which saw declines of 3.4% and 3.1%, respectively, while Albertsons Companies experienced a growth of 0.9% [3]. Sales and Earnings Outlook - P&G reported a 2% decline in sales and a modest 1% growth in earnings per share (EPS) for Q3 fiscal 2025, with weak performance in key segments [10]. - The company has revised its fiscal 2025 outlook downward, expecting flat all-in sales year-over-year and a 2% growth in organic sales, down from previous forecasts of 2-4% and 3-5% respectively [12]. - EPS is projected to rise 6-8% from the fiscal 2024 level of $6.02, with core EPS expected between $6.72 and $6.82, indicating a 2-4% increase, which is lower than earlier projections of 10-12% GAAP EPS growth [13]. Cost Pressures - P&G faces significant cost pressures, including an estimated $200 million after-tax headwind from commodity costs and another $200 million from unfavorable foreign exchange rates, impacting earnings by 16 cents per share [14]. Analyst Sentiment - The Zacks Consensus Estimate for P&G's fiscal 2025 and 2026 EPS has decreased by 1.6% and 4.2% respectively in the past 30 days, indicating negative sentiment among analysts [15]. - The consensus estimates imply a 0.2% growth in sales and a 2.9% growth in EPS for fiscal 2025, with fiscal 2026 estimates showing growth of 2.6% and 3.2% respectively [15]. Valuation - P&G trades at a forward 12-month price-to-earnings (P/E) multiple of 23.32X, which is significantly higher than industry peers like Clorox (19.85X), Unilever (18.32X), and Albertsons Companies (10.1X) [18][19]. - The current valuation is below its five-year high of 26.67X but raises questions about sustainability in a competitive and uncertain economic environment [18][22].

Core Points - March of Dimes is awarding six nursing scholarships to students dedicated to improving maternal and infant health, with each scholarship valued at $10,000 [1][3] - The partnership with Pampers, which has lasted over 25 years, supports the initiative to strengthen the maternal and infant health workforce in the U.S. [1][4] - The U.S. has the highest maternal mortality rate among high-income countries, with over 80% of pregnancy-related deaths deemed preventable according to the CDC [3] Scholarship Details - The 2025 March of Dimes Nursing Scholarships include Graduate Nursing Scholarships for registered nurses in graduate programs focused on maternal and infant health [5] - Nurse Midwifery Scholarships are aimed at students in accredited nurse-midwifery programs, promoting access to midwifery care and postpartum support [6] - Undergraduate Nursing Scholarships support students pursuing careers in maternal and infant health [8] Recipient Highlights - Recipients include students from various universities, each committed to addressing maternal and infant health disparities through their respective programs [2][7][8] - Notable recipients include Hana Hamdi, who focuses on midwifery-led primary care, and Katie Page, who aims to influence healthcare systems through research and policy [6][7] - Other recipients, like Michael Lopez and Bethany Cooper, emphasize their dedication to improving maternal health and addressing healthcare disparities [8]

Core Viewpoint - The National Advertising Division (NAD) has found that certain claims made by Reckitt Benckiser regarding its Lysol Air Sanitizer are supported, while others, particularly unqualified "eliminates odor" claims, should be discontinued [1][2][7]. Odor Elimination Claims - P&G challenged various "eliminates odor" claims made by Reckitt for Lysol Air Sanitizer across multiple platforms, including product labels, websites, and social media [3][4]. - NAD determined that the evidence provided by Reckitt did not support the claim that Lysol Air Sanitizer eliminates all odors at a molecular level [5][6]. - NAD recommended discontinuing claims that suggest Lysol Air Sanitizer eliminates all household malodors and the perception of odor at a sensory level [6]. Comparison to Air Fresheners - P&G contested claims comparing Lysol Air Sanitizer to air fresheners, asserting that only Lysol can remove viruses and bacteria from the air [8][9]. - NAD found that the advertising did not convey a broad message of superiority over air fresheners like Febreze, but supported claims regarding odor reduction [9]. Social Media Advertising - P&G challenged TikTok posts by a Lysol influencer, but NAD found the product was used according to label instructions [10]. - NAD determined that certain claims in website videos and commercials implied that Lysol Air Sanitizer eliminates all malodors, which was unsupported [11]. - Reckitt voluntarily discontinued certain TikTok videos that misrepresented product use, which NAD treated as compliance with its recommendations [13]. Advertiser Response - Reckitt expressed disagreement with NAD's conclusions regarding its sensory testing but accepted the findings related to the reviewed advertising [14].

Core Insights - Procter & Gamble (P&G) has a strong reputation for consistent results and dividend growth, having raised its dividend for 69 consecutive years, placing it among the elite "Dividend Kings" [1] - Following the release of its third-quarter fiscal 2025 earnings report, P&G's stock fell by 3.7%, prompting a review of whether this decline is justified or presents a buying opportunity [2] Financial Performance - P&G's second-quarter fiscal 2025 guidance included expectations for full-year sales growth of 2% to 4%, diluted EPS growth of 10% to 12%, core EPS growth of 5% to 7%, $10 billion in dividend payments, and $6 billion to $7 billion in stock buybacks [4] - The latest quarterly results showed a 1% decline in volumes, a 1% increase in price, and a 2% overall decline in net sales, leading to a downward revision in EPS guidance to 6% to 8% for diluted EPS and 2% to 4% for core EPS [5] Consumer Demand and Market Conditions - Consumer demand is under pressure due to various economic factors, including market volatility, job market uncertainty, and rising mortgage rates, leading to decreased retail traffic [7] - P&G's management noted a decline in value consumption in both the U.S. and Europe, with tariffs expected to impact the business by $1 billion to $1.5 billion annually, approximately 3% of the cost of goods sold [8] Competitive Positioning - P&G is better positioned than its competitors to handle tariff pressures due to superior operating margins and a diverse brand portfolio, which helps retain customers even during spending pullbacks [10] - The company continues to innovate with new products across its brands, such as the launch of OxyBoost Power Pods and Gain Odor Defense, allowing it to maintain customer loyalty [11][12] Dividend and Capital Return - Despite the challenges, P&G's dividend remains secure, with a yield of 2.6% and plans to return $6 billion to $7 billion to shareholders in fiscal 2025, reflecting the strength of its capital return program [14] - The stock is currently trading just 3.3% above its 52-week low, resulting in a price-to-earnings (P/E) ratio of 25.6, which is close to its 10-year median P/E of 25.7, presenting a potentially better value for investors [15] Long-term Outlook - While P&G's stock may face near-term pressure due to tariff uncertainties, the long-term investment thesis remains intact, making it a solid option for risk-averse investors seeking reliable passive income [16][17]