Financial Data and Key Metrics Changes - The third quarter organic net sales increased by 2.5%, driven by a 2.4% volume growth, with Baby and Child Care showing volume growth across multiple regions [40] - Adjusted operating profit dollars for Q3 were flat compared to the prior year and down 3.2% for the first nine months of the year [40][41] - Year-to-date adjusted operating profit margin was 17%, consistent with the prior year despite tariff headwinds [41][42] Business Line Data and Key Metrics Changes - North America achieved a volume plus mix growth of 2.1% in Q3, with strong performance in adult and feminine care, and baby and child care [19][20] - International Personal Care segment reported a volume plus mix growth of 3.6% in Q3, with significant gains in China, Korea, Australia, and Indonesia [29] - The diaper business in North America grew volume by 7% and gained 90 basis points of market share year-to-date [27] Market Data and Key Metrics Changes - In North America, the company gained 30 basis points of share in the first half of the year, with overall market share improvements in Personal Care [21][24] - Internationally, the company saw share gains in diapers across several markets, including China (270 basis points), South Korea (230 basis points), Brazil (90 basis points), and Indonesia (150 basis points) [29][38] - The weighted average private label share in personal care categories has consistently declined for the past five quarters [21] Company Strategy and Development Direction - The company is focused on its "Powering Care" strategy, which emphasizes innovation, brand building, and operational efficiency to drive growth [4][16] - Recent portfolio moves are aimed at sharpening focus on higher margin, higher growth personal care categories [10][11] - The company plans to leverage its global scale to deliver the best products across the good, better, best spectrum in various markets [28] Management's Comments on Operating Environment and Future Outlook - Management noted that despite persistent macro challenges, the "Powering Care" strategy is creating momentum and energy across the organization [16] - The company remains confident in its ability to unlock long-term potential and drive shareholder value [51] - The outlook for net sales and operating profit growth reflects a disciplined approach to leading market growth over time [43] Other Important Information - The company announced a commitment of $29 million to menstrual care and maternal and infant care across seven major markets [6] - Year-to-date adjusted free cash flow was approximately $1.3 billion, with expectations to deliver around $2 billion for the full year [42] Q&A Session Summary Question: What are the expectations for net sales growth in 2025? - The company expects to grow broadly in line with market growth where it competes in 2025, while maintaining the intent to lead market growth over time [43] Question: How is the company addressing tariff impacts? - The company projects a net tariff impact of approximately $50 million for the year, with efforts to mitigate some of the headwinds through productivity gains [45][46] Question: What is the outlook for adjusted earnings per share? - The company continues to expect low to mid single-digit growth versus the prior year on a constant currency basis, despite various headwinds [48]

Financial Data and Key Metrics Changes - The company reported a 4% compound annual growth rate (CAGR) in net sales since 2021, with consistent volume and mix growth observed over the last couple of years [10] - Operating margin improved by 300 basis points over the past two years, while marketing spending increased by 33% [10] Business Line Data and Key Metrics Changes - The North American diaper business saw a significant shift towards premium products, with the premium segment increasing from 40% to over 70% [13] - E-commerce now accounts for more than 25% of consumer sales, with a strong performance in digital channels [9] Market Data and Key Metrics Changes - The global category growth rate in the second quarter was around 2%, with expectations to outpace this through innovation and premiumization [16] - The company is gaining or holding market share in seven of its eight consumer categories, particularly in personal care [10] Company Strategy and Development Direction - The company is transforming into a pure-play personal care and wellness company, focusing on higher growth and higher margin categories [5][42] - A new leadership appointment was made to accelerate transformation, with a focus on leveraging global expertise and proprietary technologies [6][11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are under pressure, but the company is well-positioned to meet their needs through innovation and product performance [16] - The company expects to continue investing in innovation and marketing to drive growth, despite current economic challenges [16][39] Other Important Information - The company plans to increase capital expenditures to around 6% of net sales in the coming years to support supply chain transformation [28] - The advertising spend has doubled since 2018, with a current run rate of about 7% of sales, which management believes is appropriate for long-term growth [39] Q&A Session Summary Question: What is driving the positive volume mix growth? - Management indicated that consumers are willing to trade up for better-performing products, leading to significant premiumization in categories like diapers [13][15] Question: What are the key focus areas for the COO in the next year? - The COO emphasized the importance of performing while transforming, focusing on executing current strategies while laying the groundwork for future growth [40] Question: How does the company plan to manage productivity targets in light of recent changes? - The CFO confirmed that the company remains committed to its long-term productivity targets and is tracking ahead of its $3 billion gross productivity program [54]

Financial Data and Key Metrics Changes - The company reported a 4% compound annual growth rate (CAGR) in net sales since 2021, with consistent volume and mix growth observed over the last couple of years [10] - Operating margin improved by 300 basis points over the past two years while marketing spending increased by 33% [10] Business Line Data and Key Metrics Changes - The North American diaper business saw a significant shift towards premium products, with the premium segment increasing from 40% to over 70% [13] - E-commerce now accounts for more than 25% of consumer sales, with a strong share index compared to national averages [9] Market Data and Key Metrics Changes - The global category growth rate in the second quarter was around 2%, with expectations to outpace this through innovation and premiumization [16][18] - In China, the premium segment of the diaper market grew from 6% in 2019 to 42% [13] Company Strategy and Development Direction - The company is transforming into a pure-play personal care and wellness company, focusing on high-growth, high-margin categories [5][42] - A new leadership appointment aims to enhance the company's operational capabilities and drive growth [11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are under pressure, but the company is well-positioned to meet their needs across all price tiers [16] - The company expects to continue investing in innovation and marketing to drive growth, despite a challenging consumer environment [16][39] Other Important Information - The company plans to increase capital expenditures to around 6% of net sales in the coming years to support supply chain transformation [28] - The joint venture with Suzano is expected to reduce earnings volatility related to fiber costs significantly [43] Q&A Session Summary Question: What is driving the positive volume mix growth? - Management highlighted that consumers are willing to trade up for better-performing products, leading to a significant shift towards premium offerings [12][13] Question: What are the key drivers of the current 2% category growth? - The focus on driving new benefits, innovation, and premiumization across all price tiers is essential for growth [18] Question: How is the company approaching innovation? - The company plans to accelerate the pace of innovation, focusing on both incremental and category-changing advancements [20] Question: What are the priorities for the new COO? - The COO emphasized the importance of performing while transforming, ensuring the company executes effectively while laying the groundwork for future growth [40] Question: How does the company view its advertising investment? - The company has doubled its advertising spend since 2018 and is focused on creating brand love through effective storytelling [39] Question: What is the outlook for earnings growth into 2026 and 2027? - The company expects ongoing operations to grow in line with its long-term algorithm, with specific adjustments for the joint venture's impact [56]

Financial Data and Key Metrics Changes - The company reported a 4% compound annual growth rate (CAGR) in net sales since 2021, with consistent volume and mix growth observed over the last couple of years [10] - Operating margin improved by 300 basis points over the past two years while marketing spending increased by 33% [10] Business Line Data and Key Metrics Changes - The North American diaper business saw a significant shift towards premium products, with the premium segment increasing from 40% to over 70% [13] - E-commerce now accounts for more than 25% of consumer sales, with a strong share index compared to national averages [9] Market Data and Key Metrics Changes - The company experienced a 2% weighted average category growth rate globally in the second quarter [16] - In developed markets, there is a notable shift towards premiumization, with significant growth in premium segments in various regions, including China [13] Company Strategy and Development Direction - The company is transforming into a pure-play personal care and wellness company, focusing on high-growth, high-margin categories [5] - A multi-year pipeline of proprietary innovation is being developed to expand categories and meet consumer needs [5] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are under pressure, and there is no immediate catalyst for change in the near term [16] - The strategy of cascading innovation across all tiers is driving growth, with a focus on meeting consumer needs at every price point [15] Other Important Information - The company plans to increase capital expenditures to around 6% of net sales in the coming years to support supply chain transformation [28] - The advertising spend has doubled since 2018, with a projected ongoing run rate of about 7% of sales [39] Q&A Session Summary Question: What is driving the positive volume mix growth? - Management highlighted that consumers are willing to trade up for better-performing products, leading to significant shifts towards premium offerings [12][13] Question: What are the drivers of the current 2% category growth? - The focus on driving new benefits, innovation, and premiumization across all price tiers is essential for growth [18] Question: How is the company approaching innovation? - The company is committed to both an accelerated pace of innovation and significant improvements in product performance [20][21] Question: What are the top priorities for the new COO? - The focus is on performing while transforming, ensuring the organization is set up for future success while executing current strategies [40] Question: How does the company view its portfolio changes? - The company aims to focus on higher growth, higher margin categories and reduce earnings volatility associated with fiber costs [42][43] Question: What is the outlook for advertising investment? - The company has increased advertising investment significantly and plans to continue this trend to enhance brand storytelling and consumer connection [30][39]