Financial Data and Key Metrics Changes - In the second quarter, reported net revenues decreased by 0.8% to €747 million, with organic sales declining by 1.1% and volume also declining by 1% [25][26] - Adjusted EBITDA decreased by 7% year on year to €129 million, while adjusted EPS fell by 9% to €0.40 [30] - Adjusted gross margin contracted by 310 basis points year on year due to higher cost inflation, which more than offset productivity gains [28] Business Line Data and Key Metrics Changes - The chicken portfolio retail sales grew by 52% in the last quarter, with market share reaching 18%, a five percentage point increase from the previous year [14] - Retail sales in the frozen potato category rose by 21% year over year in the UK, gaining 180 basis points of market share [15] - Growth platforms saw net sales increase by 47% in the second quarter and 43% in the first half of the fiscal year [13] Market Data and Key Metrics Changes - Organic sales in the category posted high single-digit volume declines in key markets such as the UK, France, and Belgium due to unusually warm weather [26] - The frozen food category outpaced overall food volume sales by 60 basis points despite unfavorable weather conditions [11] - Weather-related headwinds negatively impacted frozen food sales by approximately 1% in France and 2% in the top five markets [7][9] Company Strategy and Development Direction - The company aims to return to organic sales growth in the second half of the fiscal year, assuming normalization of weather conditions [5][22] - Continued investment in advertising, merchandising, and innovation is expected to support long-term growth [12][19] - The company plans to launch new products targeting health-conscious consumers and enhance its portfolio with improved offerings [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 is proving to be a more challenging year due to external headwinds affecting the industry [4] - The company expects full-year organic sales to be flat to minus 2%, a revision from the previous expectation of flat to plus 2% [33] - Despite the challenges, management remains confident in the underlying health of the business and the potential for recovery in the second half of the year [36] Other Important Information - The company has returned substantial cash to shareholders, repurchasing €100 million of shares and paying out over €48 million in dividends, marking a 132% increase compared to the first half of last year [21][31] - The company is focused on controlling costs and enhancing profitability through various self-help actions [24][20] Q&A Session Summary Question: What are the expectations for organic sales growth in the second half of the year? - Management expects organic sales to return to growth in the second half, assuming normal weather conditions [22] Question: How is the company addressing the impact of weather on sales? - The company plans to adjust merchandising and consumer communication to emphasize products that perform better in warm weather [23] Question: What is the outlook for adjusted EBITDA and EPS for the full year? - Adjusted EBITDA is expected to decline by 3% to 7% year on year, with adjusted EPS guidance revised to €1.64 to €1.76 [35]

Financial Data and Key Metrics Changes - For Q2 2025, reported net revenues decreased by 0.8% to €747 million, with organic sales declining by 1.1% and volume also down by 1% [24][25] - Adjusted EBITDA decreased by 7% year on year to €129 million, while adjusted EPS fell by 9% to €0.40 [28][29] - Year-to-date free cash flow grew by 70% year on year, with a conversion ratio of 43% [29][30] Business Line Data and Key Metrics Changes - The company's growth platforms saw net sales increase by 47% in Q2 and 43% in the first half of the fiscal year [12] - Retail sales for the chicken portfolio grew by 52% in the last quarter, with market share reaching 18%, a five percentage point increase from the previous year [13] - Frozen potato retail sales in the UK rose by 21% year over year, gaining 180 basis points of market share [14] Market Data and Key Metrics Changes - Organic sales in the category were down by 1% in Q2, with high single-digit volume declines observed in key markets like the UK, France, and Belgium [25][26] - The unusually warm weather negatively impacted consumer behavior, contributing to a 1.5% negative impact on the full-year outlook [26][32] - The frozen food category has outpaced overall food industry growth by nearly one percentage point over the past decade [10] Company Strategy and Development Direction - The company plans to return to organic sales growth in the second half of the year, assuming normal weather conditions [31][35] - Continued investment in advertising, merchandising, and innovation is expected to support long-term growth [11][18] - The company is focused on enhancing profitability through cost savings and productivity improvements [19][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 is a challenging year, with external headwinds affecting performance [4][5] - Despite the setbacks, management remains optimistic about long-term growth opportunities in the frozen food category [10][20] - The company expects to recover cost increases through pricing actions, although most will not take effect until 2026 [27][32] Other Important Information - The company has returned substantial cash to shareholders, repurchasing €100 million of shares and paying out over €48 million in dividends, marking a 132% increase compared to the first half of last year [20][30] - A new advertising campaign is set to launch in the UK, coinciding with product innovations aimed at younger, health-conscious consumers [18][15] Q&A Session Summary Question: What are the expectations for organic sales growth in the second half of the year? - Management expects organic sales to return to growth in the second half, assuming normal weather conditions [31] Question: How is the company addressing the impact of weather on sales? - The company plans to adjust merchandising and consumer communication to emphasize products that perform better in warm weather [22] Question: What are the expectations for adjusted EBITDA and EPS for the full year? - Adjusted EBITDA is expected to decline by 3% to 7% year on year, with adjusted EPS projected in the range of €1.64 to €1.76 [34]

Core Insights - Church & Dwight Co., Inc. (CHD) reported second-quarter 2025 results with both net sales and earnings exceeding the Zacks Consensus Estimate, despite a year-over-year decline in net sales [1][9] - Adjusted earnings per share (EPS) for the quarter was 94 cents, surpassing the estimate of 85 cents and reflecting a 1% increase from the previous year [1][9] Financial Performance - Net sales totaled $1,506.3 million, a decrease of 0.3% year over year, but above the Zacks Consensus Estimate of $1,480 million [2] - Organic sales increased by 0.1%, driven by a 0.8% rise in volume, which was partially offset by a 0.7% decline in pricing and product mix [2][9] - Gross margin contracted by 410 basis points to 43%, with an adjusted gross margin of 45%, down 40 basis points year over year due to higher manufacturing costs and product mix issues [3][9] Segment Performance - Consumer Domestic segment net sales fell 1.4% to $1,154.1 million, with organic sales declining by 1% [5] - Consumer International segment saw a 5.3% increase in net sales to $277.6 million, with organic sales climbing 4.8% [6] - Specialty Products segment experienced a 3% decline in sales to $74.6 million, although organic sales grew by 0.1% [7] Financial Health - The company ended the quarter with cash and cash equivalents of $923.2 million and long-term debt of $2,205.8 million [8] - Cash from operations for the first half of 2025 was $416.5 million, with capital expenditures amounting to $39 million [8] Future Outlook - For 2025, CHD anticipates organic sales growth of around 0-2%, influenced by the Touchland acquisition and the impact of exiting certain businesses [11] - The company expects a full-year reported gross margin of 44%, with adjusted gross margin projected to contract by 60 basis points compared to 2024 [12] - Marketing expenses as a percentage of sales are expected to be approximately 11%, reflecting continued investment in brands and innovation [12][13]

Core Insights - Church & Dwight reported Q2 2025 earnings per share of $0.94 (Non-GAAP), exceeding analyst expectations of $0.86 and its own guidance of $0.85 adjusted EPS [1][5] - Net sales (GAAP) reached $1,506.3 million, surpassing estimates by $19.1 million but down 0.3% year-over-year [1][5] - The company faces challenges with gross margin tightening and underperformance in certain product categories, particularly vitamins [1][7] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.94, a 1.1% increase from $0.93 in Q2 2024 [2] - GAAP revenue was $1,506.3 million, a slight decrease of 0.3% from $1,511.2 million in Q2 2024 [2] - Organic sales growth was minimal at 0.1%, with domestic organic sales declining by 1.0% while international sales grew by 4.8% [2][6] Business Strategy - The company focuses on "power brands" that contribute approximately 70% of net sales and profits, including laundry detergent and vitamins [3] - Recent strategies include acquisitions, international expansion, and optimizing brand mix, while also pruning underperforming businesses [4] - The vitamin segment is under review for potential restructuring or divestment due to ongoing underperformance [11] Market Dynamics - Five out of seven power brands gained market share, with HERO, ARM & HAMMER, and THERABREATH identified as key growth drivers [9] - The newly acquired Touchland brand has become the eighth power brand, contributing to growth [10] - E-commerce sales accounted for 23% of total consumer sales, up from 22% in Q2 2024 [10] Operational Challenges - Gross margin decreased to 45.0% (Non-GAAP), down 0.4 percentage points from the previous year, impacted by rising manufacturing costs and tariffs [2][7] - The company incurred approximately $51 million in pre-tax charges related to exits from underperforming businesses [8] - Cash from operations fell by $83.4 million to $416.5 million due to working capital changes and lower operating earnings [13] Future Outlook - For fiscal 2025, management expects net sales and organic sales growth in the range of 0% to 2%, with adjusted EPS also projected to rise by 0% to 2% [14] - Q3 2025 guidance anticipates reported and organic sales growth of 1% to 2%, but adjusted EPS is expected to decline to $0.72, a 9% decrease from the prior year [15] - Strategic decisions regarding the vitamin business are expected by the end of fiscal 2025 [15]

Core Insights - Kimberly-Clark Corporation (KMB) reported second-quarter 2025 results that exceeded Zacks Consensus Estimates for both revenue and earnings, although both metrics declined compared to the previous year [1][2] Financial Performance - Adjusted earnings per share (EPS) were $1.92, surpassing the Zacks Consensus Estimate of $1.68, but reflecting a 2% year-over-year decline due to reduced adjusted operating profit and net income from equity companies [3] - Total sales amounted to $4,163 million, a 1.6% decrease from $4,231 million in the prior-year quarter, yet beating the Zacks Consensus Estimate of $4,057 million [4] - Organic sales grew by 3.9%, driven by a 5% increase in volume, partially offset by a 1.2% impact from strategic pricing investments [5] Margin and Profitability - Adjusted gross margin was 36.9%, down 180 basis points year-over-year, primarily due to unfavorable pricing net of cost inflation and planned investments [6] - Adjusted operating profit fell 2.2% to $713 million, attributed to lower gross profit, although partially offset by reductions in marketing and general expenses [7] Segment Performance - North America segment net sales were $2,730 million, down 1.9% year-over-year, with organic sales increasing by 4.3% driven by a 5.2% volume increase [9] - International Personal Care segment net sales reached $1,433 million, up 0.4%, with organic sales growth of 3.3% supported by strong volume growth of 4.8% [11][12] Financial Health - The company ended the quarter with cash and cash equivalents of $634 million, long-term debt of $6,470 million, and total stockholders' equity of $1,403 million [13] - For the first half of the year, cash provided by operations was $1,097 million, with capital spending of $401 million and $944 million returned to shareholders through dividends and share buybacks [13] Future Outlook - Kimberly-Clark raised its guidance for 2025, expecting organic sales growth to outpace market averages, despite anticipated negative impacts from currency translation and divestitures [15][16] - Adjusted EPS is projected to grow at a low-to-mid single-digit rate on a constant-currency basis, reflecting various headwinds including divestitures and currency translation [17][18]

Core Insights - Colgate-Palmolive Company (CL) reported strong second-quarter 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year improvement [1][2][8] - The company is focusing on enhancing its capabilities in digital, data, and analytics to strengthen competitive advantages and profitability [1] Financial Performance - On a non-GAAP basis, earnings per share (EPS) were $0.92, a 1% increase from the previous year, surpassing the Zacks Consensus Estimate of $0.89 [2][8] - Net sales reached $5.11 billion, a 1% increase from the prior year, exceeding the Zacks Consensus Estimate of $5.05 billion [2][8] - Organic sales grew by 1.8%, despite a 0.6% negative impact from reduced private-label pet volume and a 1% adverse effect from foreign exchange [2][8] Segment Analysis - North America's net sales, accounting for 20% of total sales, decreased by 1% year over year, attributed to a 0.5% drop in pricing and a 0.4% decline in volume [10] - Latin America's net sales, representing 24% of total sales, fell by 4.8% year over year, with an 8.2% negative currency impact overshadowing a 3% pricing gain [10] - Europe's net sales increased by 7.8% year over year, driven by a 2.2% rise in pricing and a 5.7% positive currency effect [11] - The Asia Pacific segment's net sales rose by 0.8% year over year, with a 1.6% drop in volume offset by a 1.6% increase in pricing [11] - Africa/Eurasia's net sales improved by 8% year over year, supported by a 4.3% growth in volume and a 3.4% increase in pricing [12] - Hill's Pet Nutrition's net sales increased by 3.8% year over year, benefiting from a 2.9% rise in pricing [12] Profitability Metrics - The base business gross profit was $3.07 billion, a slight decrease of 0.2% from the previous year, with a gross profit margin of 60.1%, down 70 basis points [6][9] - Adjusted operating profit was $1.09 billion, a decline of 3% year over year, with an adjusted operating profit margin of 21.3%, down 80 basis points [9] Cash Flow and Shareholder Returns - Colgate ended the second quarter with cash and cash equivalents of $1.22 billion and total debt of $8.8 billion [13] - The company generated $1.5 billion in net cash from operating activities for the first half of 2025 and returned $880 million to shareholders through dividends [13] Future Outlook - Colgate anticipates continued uncertainty and volatility in global markets, projecting organic sales growth at the lower end of the previous 2-4% guidance range [14][16] - The company expects net sales to grow in low single digits, with a flat to low-single-digit adverse impact from foreign exchange [15]

Financial Data and Key Metrics Changes - The company reported a gross margin improvement of 160 basis points, contributing to strong cash flow and organic profit growth [7][19] - A&P (Advertising and Promotion) spending increased by 6.8% to 20.8% in the first half of the year, reflecting a strategic focus on growth drivers [19][21] - The company expects high single-digit operating profit growth for the year, driven by gross margin opportunities [55][78] Business Line Data and Key Metrics Changes - North America experienced a nearly 2% organic sales growth decline, attributed to a challenging consumer environment and inventory pressures [4][8] - Strong growth and market share gains were noted in oral health and digestive health brands, while pain relief and VMS (Vitamins, Minerals, and Supplements) showed mixed performance [11][12] - Centrum faced challenges in the U.S. market, with declines despite strong growth outside the U.S. [13][14] Market Data and Key Metrics Changes - EMEA, Latin America, and APAC markets performed well, with organic sales growth within the medium-term guidance of 4% to 6% [4][8] - Volume growth in EMEALATAM accelerated from 0.5% in Q1 to 1.6% in Q2, while Asia Pacific saw an increase from 3.3% to 3.9% [47][50] - The U.S. market showed a decline in volume, down 1.8% in Q2, impacting overall performance [48][49] Company Strategy and Development Direction - The company remains committed to its medium-term guidance of 4% to 6% growth, despite current challenges in the U.S. market [45][50] - Strategic investments are focused on supply chain productivity, innovation, and expanding access to lower-income consumers [18][39] - The company plans to continue its innovation-led premiumization strategy while addressing core business challenges [40][55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging consumer environment in North America, with expectations of continued inventory pressures [8][16] - The company is optimistic about returning to growth in 2026, supported by new leadership and strategic initiatives [49][50] - Management expressed confidence in the resilience of the European market, particularly in oral health [52][53] Other Important Information - The nicotine replacement therapy business is a significant but challenging category, with a complex ownership structure impacting innovation [73][75] - The company is actively managing inventory levels with retailers to navigate the current economic environment [15][28] Q&A Session Summary Question: North America's performance and future growth expectations - Management noted that North America faced a nearly 2% decline in organic sales growth due to a challenging consumer environment and inventory pressures, with expectations for gradual recovery [4][8][16] Question: A&P spending and areas of reinvestment - A&P spending increased significantly, with a focus on driving growth through innovation and reaching lower-income consumers [19][21] Question: Share performance and competitive pressures - The decline in the percentage of business gaining or maintaining share was attributed to challenges with key brands like Advil and Centrum, with plans in place to stabilize performance [30][32] Question: Retailer environment and channel dynamics - Management discussed the impact of retailer destocking and channel shifts, particularly in the U.S. market, and emphasized the need to adapt to these changes [28][86] Question: Outlook for specific product categories - Management provided insights on the performance of Advil, Smoker's Health, and Centrum, highlighting ongoing challenges and upcoming innovations [60][66][68]

Financial Data and Key Metrics Changes - The company reported a decline in organic sales growth in North America of nearly 2% in Q2, contrasting with growth in EMEA, LatAm, and APAC, which were within the medium-term guidance of 4% to 6% [3][5][14] - Gross margin improved by 160 basis points, contributing to strong cash flow and organic profit growth [5][15] - A&P (Advertising and Promotion) spending increased by 6.8% to 20.8% in the first half of the year, reflecting a focus on growth drivers [16][19] Business Line Data and Key Metrics Changes - In North America, consumption grew slightly ahead of the market, with a 0.5% increase compared to a market decline of 0.5% [9][10] - Oral health and digestive health brands showed strong growth, with market share gains in brands like Tons and Benefiber [9][10] - Centrum experienced mid-single-digit growth outside the US but saw declines in the US, while Emergency brand continued to perform well [11][12] Market Data and Key Metrics Changes - The US market is facing challenges with low consumer confidence and inventory pressures, impacting overall performance [6][8][14] - EMEA and APAC regions showed positive trends, with volume growth accelerating in Q2 [47][51] - Central Europe reported high single-digit growth, while Western Europe experienced mid-single-digit growth, driven by strong performance in oral health [53][54] Company Strategy and Development Direction - The company remains committed to its medium-term guidance of 4% to 6% organic sales growth despite current challenges in the US market [49][56] - Focus on innovation and premiumization, particularly in key markets like India and Brazil, is part of the strategic plan [39][40] - The company aims to close the incidence treatment gap and expand reach to lower-income consumers while maintaining investment in A&P and R&D [16][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging consumer environment in the US, with expectations of continued inventory pressure and no significant improvement anticipated in the near term [14][22] - Confidence in the medium-term outlook remains strong, with expectations for improved performance in 2026 [49][56] - The company is actively managing its portfolio and focusing on driving market growth despite external challenges [36][41] Other Important Information - The nicotine replacement therapy (NRT) business is a significant part of the portfolio, with a complex ownership structure affecting innovation and growth [73][75] - The company expects a high single-digit growth in operating profit, supported by gross margin improvements and effective cost control [77][78] Q&A Session Summary Question: North America's performance and future growth expectations - Management noted that North America faced challenges due to a difficult consumer environment and inventory pressures, with expectations for a gradual return to growth [3][22][25] Question: A&P spending and areas of reinvestment - A&P spending increased significantly, with a focus on driving growth in key markets and improving ROI [16][19] Question: Share performance and competitive pressures - The decline in the percentage of business gaining or maintaining share was attributed to challenges with brands like Advil and Centrum, with plans in place to stabilize performance [28][30] Question: Impact of nicotine replacement therapy on growth - The NRT business had a significant impact on overall growth, with expectations for less decline in the second half of the year [76][80] Question: Channel shifts and inventory management - Management discussed the impact of channel shifts, particularly towards e-commerce, and the need for effective inventory management across channels [86][90]

Second Quarter 2025 Financial Results July 29, 2025 Forward-Looking Statements This presentation contains forward-looking statements that reflect the Company's current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words "aim," "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast" ...

Core Insights - Procter & Gamble (PG) reported revenue of $20.89 billion for the quarter ended June 2025, marking a year-over-year increase of 1.7% and exceeding the Zacks Consensus Estimate by 0.39% [1] - The earnings per share (EPS) for the same period was $1.48, up from $1.40 a year ago, representing a surprise of 3.5% over the consensus estimate of $1.43 [1] Financial Performance Metrics - Organic Sales Growth for Beauty was 1%, below the average estimate of 1.7% [4] - Organic Sales Growth for Grooming was 1%, compared to the estimated 2.8% [4] - Total Organic Sales Growth for P&G was 2%, exceeding the average estimate of 1.4% [4] - Organic Sales Growth for Baby, Feminine & Family Care was 1%, above the estimate of 0.6% [4] - Organic Sales Growth for Fabric & Home Care was 1%, slightly below the estimate of 1.4% [4] - Organic Sales Growth for Health Care was 2%, below the average estimate of 3.1% [4] Net Sales Performance - Net sales for Beauty were $3.73 billion, slightly below the estimate of $3.76 billion, with a year-over-year change of +0.2% [4] - Net sales for Grooming were $1.68 billion, matching the average estimate, with a year-over-year increase of +1.6% [4] - Net sales for Corporate were $274 million, significantly above the estimate of $186.14 million, representing a +35.6% change year-over-year [4] - Net sales for Fabric & Home Care were $7.39 billion, slightly above the estimate of $7.36 billion, with a year-over-year change of +1.7% [4] - Net sales for Baby, Feminine & Family Care were $5.09 billion, exceeding the estimate of $5.02 billion, with a year-over-year change of +1.7% [4] - Net sales for Health Care were $2.72 billion, slightly below the estimate of $2.74 billion, with a year-over-year change of +1.8% [4] Stock Performance - P&G shares have returned -1.4% over the past month, while the Zacks S&P 500 composite has increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]