Financial Data and Key Metrics Changes - In 2025, the company achieved 3% organic sales growth, which is below the medium-term guidance of 4%-6% due to lower category growth and reduced consumer confidence in key markets [1][5] - Full year organic revenue growth was 3%, with a split of 2.3% from price and 0.7% from volume mix [11] - Gross margin improved by 220 basis points, resulting in 10.5% organic profit growth [6][10] - Free cash flow reached GBP 1.9 billion, with a reduction in working capital by 11 days [10][22] Business Line Data and Key Metrics Changes - Oral health delivered high single-digit growth, outperforming the market with a 7.9% increase, driven by brands like Sensodyne and parodontax [13][20] - VMS (Vitamins, Minerals, and Supplements) grew 1.9%, with strong performance outside the U.S. but impacted by a softer multivitamin category in North America [14][17] - OTC (Over-the-Counter) pain relief grew 2.3%, with notable growth from Panadol and Advil [14][16] - Respiratory health declined by 1.9%, affected by a challenging consumer environment and a weaker cold and flu season [16] Market Data and Key Metrics Changes - North America experienced a 0.4% decline in organic revenue, with a split of 1% price increase and a 1.4% decline in volume mix [17] - EMEA and Latin America saw organic revenue increase by 4.7%, driven by price and volume mix [19] - Asia Pacific reported a 5.2% organic revenue growth, with significant contributions from China and India [20] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering competitive growth, unlocking productivity gains, and embedding an agile culture [1][4] - A new operating model is being implemented to enhance growth and agility, including the creation of new leadership roles and operating units [28][29] - The company plans to invest in A&P (Advertising and Promotion) and R&D to drive innovation and market execution [8][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning North America to growth, despite a challenging operating environment [7][32] - The outlook for 2026 anticipates organic revenue growth of 3%-5%, with continued strength in emerging markets [25][26] - Management acknowledged the need for improved organic revenue performance and is focused on unlocking productivity to drive growth [10][26] Other Important Information - The company allocated GBP 500 million for share buybacks in 2026 and proposed a final dividend of 4.9 pence, reflecting a 7.6% increase in total dividends for the year [6][25] - The productivity agenda aims for a reduction of SKUs and packaging by around 30% over three years, with expected gross annualized savings of GBP 175 million to GBP 200 million [4][24] Q&A Session Summary Question: What are the expectations for North America returning to growth? - Management is implementing a broader action plan and has strengthened the North America team to drive growth through improved marketing effectiveness and innovation [32] Question: How is the company addressing the challenges in the U.S. market? - The company is focusing on scaling innovations faster and leveraging its portfolio to improve competitive positioning in key categories [32]

Financial Data and Key Metrics Changes - In 2025, the company achieved 3% organic sales growth, which is below the medium-term guidance of 4%-6% due to lower category growth and reduced consumer confidence [1][5] - Full year organic revenue growth was 3%, with a split of 2.3% from price and 0.7% from volume mix [5][10] - Gross margin improved by 220 basis points, resulting in 10.5% organic profit growth [6][9] - Free cash flow reached GBP 1.9 billion, with a reduction in working capital by 11 days [9][20] Business Line Data and Key Metrics Changes - Oral health grew by 7.9%, significantly outperforming the market, driven by strong performance from Sensodyne and parodontax [12][14] - VMS (Vitamins, Minerals, and Supplements) grew by 1.9%, with strong performance outside the U.S. but impacted by softer multivitamin category in North America [13][14] - OTC (Over-the-Counter) pain relief grew by 2.3%, with notable growth from Panadol and Advil [13][14] - Respiratory health declined by 1.9%, affected by a weaker cold and flu season [14] Market Data and Key Metrics Changes - North America experienced a 0.4% decline in organic revenue, with a split of 1% price increase and a 1.4% decline in volume mix [15][16] - EMEA and Latin America saw organic revenue increase by 4.7%, driven by price increases and resilient performance in oral health [17] - Asia Pacific reported 5.2% organic revenue growth, with significant contributions from China and India [18] Company Strategy and Development Direction - The company is focused on three strategic priorities: competitive growth, unlocking productivity gains, and embedding an agile culture [1][4] - A new operating model is being implemented to enhance growth and agility, including the creation of new leadership roles and operating units [26][27] - The company plans to invest in A&P and R&D to drive innovation and market execution [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning North America to growth, despite a challenging operating environment [6][24] - The outlook for 2026 anticipates organic revenue growth of 3%-5%, with continued strength in emerging markets [23][24] - Management acknowledged the need for improved organic revenue performance and emphasized unlocking productivity for sustained growth [9][24] Other Important Information - The company allocated GBP 500 million for share buybacks in 2026 and proposed a final dividend of 4.9 pence, marking a 7.6% increase in total dividends for the year [23][24] - Adjusted diluted EPS grew by 5%, supported by lower net interest charges and a favorable geographic mix of profit [19][24] Q&A Session Summary Question: What are the expectations for organic revenue growth in 2026? - The company expects organic revenue growth to be in the range of 3%-5%, with a focus on returning North America to growth and leveraging opportunities in emerging markets [23][24] Question: How is the company addressing the challenges in North America? - The company is implementing a new operating model and has appointed new leaders to strengthen its North America team, focusing on improving net revenue management and marketing effectiveness [27][30]