Financial Data and Key Metrics Changes - The first quarter results reflect 40 consecutive quarters of organic sales growth, with organic sales rounded up to 2% and core earnings per share (EPS) at $1.99, up 3% versus the prior year [3][7] - Core gross margin decreased by 50 basis points, while core operating margin remained equal to the prior year [7] - Adjusted free cash flow productivity was 102%, with $3.8 billion returned to shareholders, including $2.55 billion in dividends and $1.25 billion in share repurchases [7][20] Business Line Data and Key Metrics Changes - Skin and personal care led growth with high single-digit increases, while hair care, grooming, personal health care, home care, and baby care each grew low singles [4] - Oral care and feminine care were in line with the prior year, while fabric care and family care were down low single digits [4] - Personal health care in Latin America grew organic sales by 15%, driven by strong execution and innovation [11] Market Data and Key Metrics Changes - Organic sales in North America were up 1%, while European focus markets' organic sales were equal to the prior year [4][5] - Greater China organic sales grew 5%, with Pampers and SK-II each growing double digits [5] - Latin America organic sales were up 7%, with strong growth across Mexico and Brazil [6] Company Strategy and Development Direction - The company is focusing on increased investment in its integrated growth strategy, emphasizing consumer-centric approaches and innovation [8][16] - Plans include significant upgrades to core products, such as Tide's liquid detergent, and the launch of Tide Evo, a new laundry detergent [9][10] - The restructuring program aims to create a more agile organization, with a target of reducing up to 7,000 non-manufacturing roles [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging competitive environment, particularly in the U.S. and Europe, and emphasized the need for integrated superiority through innovation [8][30] - The company maintains guidance for fiscal 2026, expecting organic sales growth of 2% to 4% and core EPS growth in line with that range [17][18] - Management expressed confidence in the long-term strategy, focusing on brand strength and category growth despite current market challenges [16][19] Other Important Information - Global aggregate market share was down 30 basis points, with 24 of the top 50 category country combinations holding or growing share [6][38] - The company is actively managing its portfolio to enhance U.S. dollar-based returns and has made several strategic exits in low-performing categories [14][73] Q&A Session Summary Question: How is the restructuring being received internally? - Management indicated that the organization is adapting well to the restructuring, with clear plans in place for reducing roles and enhancing agility [24][25] Question: What is the competitive landscape in North America? - Management acknowledged heightened competition in fabric care and baby care, emphasizing the need for integrated superiority and innovation to drive growth [30][31] Question: What are the implications of the global market share decline? - Management noted that while global market share is down, absolute share in the U.S. has been increasing, indicating a positive trend despite competitive pressures [38][39] Question: How is the company addressing consumer affordability? - Management clarified that value, defined as price over integrated performance, is central to their strategy, with a focus on optimizing price points and product offerings [47][49] Question: What is the outlook for Greater China? - Management reported strong progress in China, with significant growth in key categories, driven by effective local strategies and innovations [44][45] Question: What are the dynamics in Western Europe and Latin America? - Management described Western Europe as similar to North America, with muted growth, while Latin America continues to show strong performance, particularly in Brazil and Mexico [72][73]

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]

Financial Data and Key Metrics Changes - Organic sales for the quarter grew 1%, with volume and mix in line with the prior year, and pricing contributing one point to organic sales growth [6][9] - Earnings per share were $1.54, up 1% versus the prior year on a currency-neutral basis, while core EPS increased 3% [13][32] - Core gross margin decreased by 30 basis points, while core operating margin increased by 90 basis points [14] - Adjusted free cash flow productivity was 75%, with nearly $3.8 billion returned to shareholders, including $2.4 billion in dividends and $1.4 billion in share repurchases [15][35] Business Line Data and Key Metrics Changes - Personal health care grew high single digits, while skin and personal care grew mid-singles [6] - Fabric care, oral care, feminine care, grooming, and hair care were each in line to up low single digits, while family care, baby care, and home care were down low singles [7] - Organic sales in focus markets grew 1%, and enterprise markets grew 2% [8] Market Data and Key Metrics Changes - Organic sales in North America grew 1%, a decline from the previous 4% growth trend [9] - In Europe-focused markets, organic sales were up 1%, with France experiencing a significant headwind [10] - Latin America led enterprise markets with 6% organic sales growth despite challenges in Mexico [12] - Organic sales in China declined 2%, with notable growth in SK-II [11] Company Strategy and Development Direction - The company is focused on investing in long-term brand health, innovation, and demand creation despite near-term volatility [5][18] - The integrated growth strategy emphasizes delivering superiority across all product categories and retail channels [18][20] - The company plans to continue innovating and investing to drive market growth and balance top and bottom line growth [39] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is weak, impacting consumption levels in both the US and Europe [41][46] - The company expects organic sales growth of approximately 2% for fiscal 2025, with a range of 0.5% to 4.5% for the fourth quarter [31][32] - Commodity cost headwinds are estimated at approximately $200 million after tax for fiscal 2025 [33] Other Important Information - The company announced a 5% increase in dividends, marking the 69th consecutive annual dividend increase [15] - The company is committed to maintaining innovation plans during periods of consumer softness [28] Q&A Session All Questions and Answers Question: Retail inventory destocking and consumer behavior - Management acknowledged the impact of retail inventory destocking and noted a shift in consumer behavior towards seeking better value [41][46] Question: Modeling forecasting for 2026 - Management discussed the challenges in predicting category growth rates due to current volatility but expects a return to 3% to 4% growth in the mid-term [56][61] Question: Investment levels for innovation - Management confirmed that investment levels for innovation remain flat as a percentage of sales, with a focus on strong communication and visibility for new products [66][68] Question: Consumer trade down and market share performance - Management expressed confidence in the company's ability to serve consumers across various price points and maintain market share despite potential trade-down behavior [72][77] Question: Brand sentiment towards American brands - Management reported no significant anti-American sentiment affecting consumption behavior in most markets, including China [81][84] Question: International market growth and category performance - Management highlighted strong growth in Latin America and ongoing challenges in China, with a focus on steady progress in growth rates [105][108]