Financial Data and Key Metrics Changes - The company reported organic sales growth of nearly 3%, with volume down one point and pricing up one point for the quarter [3][4] - Core earnings per share (EPS) were $1.88, in line with the prior year, while core gross margin decreased by 50 basis points and operating margin fell by 70 basis points compared to the previous year [5][6] - Adjusted free cash flow productivity was 88%, with $4.8 billion returned to shareholders, including $2.5 billion in dividends and $2.3 billion in share repurchases [6] Business Line Data and Key Metrics Changes - Seven out of ten product categories held or grew organic sales, with hair care growing mid-single digits and skin and personal care, personal health care, home care, and oral care each up low single digits [3][4] - Baby care and family care were down low singles, with family care specifically down approximately 10% due to base period dynamics [4] - Organic sales excluding family care were up 1% for the quarter [4] Market Data and Key Metrics Changes - Organic sales in North America were down 2%, with volume down three points, while European focus market organic sales were up 1% [4] - Greater China organic sales grew 3%, driven by Pampers and SK2, each up mid-teens or more [4] - Latin America organic sales were up 8%, with solid growth across Mexico, Brazil, and other smaller markets [5] Company Strategy and Development Direction - The company is focused on strong innovations supported by sharper consumer communication and retail execution, with a commitment to integrated growth strategies [11][12] - The strategy includes a long-term reinvention of P&G to adapt to changing consumer preferences and market dynamics, emphasizing the importance of brand building and consumer engagement [12][15] - The company aims to leverage superior data, technology, and capabilities to create competitive advantages and drive market growth [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stronger growth in the second half of the fiscal year, despite a challenging start due to softer consumer markets and aggressive competition [22][25] - The company anticipates organic sales growth of in line to plus 4% for fiscal 2026, with expectations for improved performance in the U.S. as interventions take hold [22][23] - Management highlighted the need for continuous adaptation to the evolving retail landscape and consumer behavior, emphasizing the importance of innovation and execution quality [12][13] Other Important Information - The company is undergoing a restructuring program aimed at improving operational efficiency and focusing on higher growth segments [22][41] - There is an expectation of modestly higher interest expenses and a core effective tax rate in the range of 20%-21% for fiscal 2026 [23] Q&A Session Summary Question: What gives confidence in near-term acceleration? - Management noted strong growth outside the U.S., particularly in Latin America and Europe, as evidence of underlying acceleration [27][28] Question: What excites about the longer-term "reinvention" of P&G? - Management highlighted growth opportunities in changing media and retail landscapes, leveraging unique strengths and capabilities [32][33] Question: What are the most important priorities for driving better execution in the U.S.? - Key priorities include adjusting to the new media landscape, focusing on stronger core products, and enhancing consumer value across categories [46][49]

Financial Data and Key Metrics Changes - Organic sales for fiscal year 2025 grew by 2% and core earnings per share increased by 4% on a currency-neutral basis [20][22] - Adjusted free cash flow productivity was reported at 87% [20] - The company has achieved 39 consecutive quarters of top-line growth and nine consecutive years of core earnings per share growth [20] Business Line Data and Key Metrics Changes - Nine out of ten product categories experienced organic sales growth, with Family Care and Personal Health Care growing mid-single digits, while Baby Care saw a decline in low single digits [20] - E-commerce sales increased by 12%, now representing 19% of total company sales [21] Market Data and Key Metrics Changes - Focus markets grew by 2%, with North America and Europe focus markets up by 2% and 3% respectively [21] - Enterprise markets also grew by 2%, led by a 4% organic sales growth in Latin America [21] Company Strategy and Development Direction - The company is focused on an integrated growth strategy that emphasizes performance across product, package, brand communication, and retail execution [23][24] - The strategy is dynamic, allowing the company to adapt to changing consumer needs and competitive environments while maintaining strong results [24] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the challenges posed by a volatile economic and geopolitical environment but remains confident in the company's strategy and ability to drive market growth [23][25] - The company is committed to increasing investment in its strategy to achieve growth and value creation objectives [24] Other Important Information - The Board of Directors declared a quarterly dividend of $1.0568 per share, marking the 69th consecutive annual dividend increase [19][22] - A shareholder proposal regarding flexible plastic packaging was presented but ultimately voted against by the Board [18][26] Q&A Session Summary Question: Has the company considered a stock split? - The company does not foresee splitting the stock as it believes growth in stock price reflects underlying business performance [27][28] Question: Do you plan to continue the virtual format for future annual meetings? - The virtual format allows for broader participation and is considered efficient [29] Question: How does the company view efforts to advance environmental sustainability? - Environmental sustainability is a foundational component of the company's strategy, with significant progress made in reducing waste and emissions [30][31] Question: What is P&G's approach to equality and inclusion? - The company believes that equality and inclusion enhance its ability to serve consumers and drive market growth [32] Question: What factors influence P&G's presence in markets with geopolitical conflicts? - The company prioritizes the health and safety of its employees and the availability of essential products in affected regions [34][35] Question: How does P&G's executive bonus program align with standard management bonus programs? - The company emphasizes pay for performance and long-term success across its compensation programs [36] Question: How does the company approach capital allocation? - The company prioritizes funding the business, paying dividends, considering strategic acquisitions, and returning cash to shareholders [37] Question: How is P&G remaining committed to growth in emerging markets? - Emerging markets represent about 20% of the company's business, and growth will be pursued responsibly [38] Question: How is the company navigating macroeconomic pressures? - The company focuses on delivering superior propositions to consumers while managing cost pressures through productivity programs [40] Question: How does the company ensure its products are better than competitors? - The company concentrates on performance across various aspects, including product quality and market execution [41] Question: How does P&G stay in touch with consumer and market trends? - The company relies on direct consumer feedback and external thought leaders to stay relevant [42]

Financial Data and Key Metrics Changes - The fourth quarter of 2024 produced record revenues before reimbursable expenses (RBR) of $388.4 million, up 14.5% from $339.2 million in the same quarter of 2023 [39] - For the full year 2024, RBR was $1.49 billion, up 9.1% from $1.36 billion in 2023, following strong growth of 20.3% in 2023 over 2022 [40] - Net income for Q4 2024 was $34 million, or $1.84 per diluted share, compared to $2.8 million or $0.15 per diluted share in Q4 2023 [40] - Adjusted EBITDA was $56.8 million in Q4 2024, or 14.6% of RBR, compared to $41.4 million in Q4 2023, or 12.2% of RBR [43] - For the full year 2024, adjusted EBITDA as a percentage of RBR increased to 13.5%, compared to 12.3% in 2023 [44] Business Line Data and Key Metrics Changes - The Healthcare segment generated 52% of total company RBR in Q4 2024, with RBR of $202.3 million, up 17.6% from Q4 2023 [46] - The Education segment posted RBR of $118.8 million in Q4 2024, up 14.5% from Q4 2023, driven by demand for digital and strategy offerings [50] - The Commercial segment generated RBR of $67.3 million in Q4 2024, growing 6.1% over the prior year period, but declined 1.1% for the full year to $255.6 million [53] Market Data and Key Metrics Changes - The Healthcare segment achieved record RBR of $756.3 million for the full year 2024, growing 12.2% over 2023 [47] - The Education segment's full year RBR grew 10.4% year-over-year to a record $474.2 million [51] - The Commercial segment's operating income margin decreased to 20% for the full year 2024, compared to 21% in 2023, reflecting increased salaries and related expenses [55] Company Strategy and Development Direction - The company’s integrated growth strategy has driven record RBR and expanded adjusted EBITDA margins for four consecutive years, focusing on healthcare and education while expanding in commercial industries [7][30] - The company plans to continue broadening its portfolio to meet the expanding needs of healthcare clients and enhance its offerings in education and commercial sectors [11][21] - The acquisition of AXIA Consulting is expected to strengthen the company’s supply chain management offerings and broaden its technology portfolio [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that many healthcare organizations will likely need to take further actions to achieve financial sustainability due to declining provider margins and increasing costs [12][13] - The company anticipates mid-single-digit revenue growth in the healthcare segment for 2025, reflecting a more cautious outlook after several years of strong growth [64][109] - Management expressed confidence in the robustness of their pipeline and backlog, indicating that they have not seen significant clients reprioritizing spending despite a dynamic regulatory environment [72][75] Other Important Information - The company returned over $122 million of capital to shareholders via share repurchases in 2024, with a stock price increase of 21% [9] - Cash flow generated from operations for 2024 was a record $201 million, resulting in record free cash flow of $168 million [56] - The company expects adjusted diluted earnings per share for 2025 to be in the range of $6.80 to $7.60, reflecting an 11% increase over 2024 [61] Q&A Session Summary Question: Impact of Regulatory Backdrop on Pipeline - Management indicated that they have not seen significant clients reprioritizing spending and feel well-positioned to help clients navigate current uncertainties [72][74] Question: Headcount Growth Plans - The increase in headcount growth was attributed to the acquisition of AXIA and continued strong sales conversion, particularly in healthcare and digital business [78] Question: Medical Research Funding Reductions - Management explained that reduced research funding impacts education clients' revenue, necessitating changes in their institutions to respond to funding reductions [84] Question: Utilization Expectations - Management expects continued improvement in utilization rates, with Q4 2024 above 77% and a positive outlook for the first half of 2025 [87] Question: Higher Medical Costs Impact - Management noted that higher medical costs could squeeze margins for healthcare clients, impacting overall financial performance [90]