Financial Data and Key Metrics Changes - The company reported 2.4% organic growth in the second quarter, excluding the impact of private label products [3] - The company expects 2025 to be at the low end of the 2% to 4% organic growth range communicated previously [5] - The company has seen sequential dollar earnings per share growth during the 2025 strategy cycle [7] Business Line Data and Key Metrics Changes - The company has increased advertising investment over the last five years, which has improved brand penetration and health [6] - Elmex toothpaste has become one of the fastest-growing products in the European market, contributing to record market share [11] - The anti-cavity segment in India is a significant part of the franchise, with new technology combining amino acids and arginine to strengthen teeth [12] Market Data and Key Metrics Changes - The company has seen growth in both North America and emerging markets, ensuring broad-based growth across all categories [5] - In China, 40% of the market is online, with 80% of media being digital, indicating a shift in consumer purchasing behavior [28] - The company has successfully increased sales at Sam's Club by 30 times through targeted advertising and data integration [32] Company Strategy and Development Direction - The company is focused on leveraging its 2025 strategy to drive consistent top-line growth and is preparing to execute its 2030 strategy starting December 31 [2][4] - Key themes for the 2030 strategy include global brand penetration, investment in key geographies, and enhancing data and analytics capabilities [24][26] - The company aims to implement omni demand generation to better integrate online and offline marketing strategies [30][41] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer uncertainty is the primary driver for category vitality, leading to cautious purchasing behavior [59] - The company anticipates that discretionary spending will suffer in the latter half of the year, affecting overall category growth [62] - Management emphasized the importance of continuous innovation across all product segments to maintain consumer interest and drive growth [63] Other Important Information - The company has announced a new productivity initiative to streamline operations and fund strategic initiatives [3][46] - The company has invested significantly in its supply chain to optimize operations and meet consumer demands for customization [51] - Hill's pet food brand continues to outperform the category due to disciplined brand management and significant advertising investments [53][55] Q&A Session Summary Question: What areas of the 2025 strategic plan were most successful and where can improvements be made? - The company successfully focused on dollar top-line growth and building long-term capabilities, particularly in AI and digital innovation [36][37] Question: Why was omnichannel demand generation emphasized in the new strategy? - The complexity of the consumer journey necessitates a more integrated approach to marketing that targets both online and offline consumers effectively [40][41] Question: What will be the biggest changes as the company transitions to the new strategy? - Key changes will include increased innovation, resource allocation to key growth regions, and a focus on omni demand generation [43][44] Question: How does the company plan to address the slowdown in category growth? - The company will continue to innovate and bring excitement to both premium and mid-price segments to drive consumer engagement [63] Question: Is the company experiencing destocking issues? - Destocking is primarily a function of consumer behavior, with online retailers managing inventory more aggressively than brick-and-mortar stores [64][65]