Financial Data and Key Metrics Changes - The company reported a revenue of $61 billion for 2024, with a profit of $11 billion and an underlying operating margin of 18.4% [3][4] - Cash generation was strong, with $7 billion in cash returned to shareholders, including $4.3 billion in dividends and $1.5 billion in share buybacks [4][5] - The return on invested capital was noted at 18.1%, indicating a strong competitive position [5] Business Line Data and Key Metrics Changes - The company operates five business groups: Youth and Wellbeing, Personal Care, Home Care, Foods, and a fifth group being separated, which generated $8.3 billion [4][7] - The focus on 30 power brands, which account for 75% of revenue, resulted in a volume growth of 3.8% last year [9][12] - The separation of the Ice Cream business is expected to improve gross margins to nearly 47% and enhance return on invested capital by approximately 100 basis points [8] Market Data and Key Metrics Changes - The U.S. and India are identified as key growth markets, with the U.S. expected to contribute 21% and India 14% to revenue post-separation of Ice Cream [17] - In the U.S., the company has seen significant growth, with a 20% increase in sales with Amazon and a strong performance in beauty and personal care [42] - India is projected to be a major growth driver, with over 50% market share in several categories and a focus on digitizing distribution [20][21] Company Strategy and Development Direction - The company is transitioning to a category-led organization, focusing on premiumization and reducing exposure to value segments [16][17] - There is a clear strategy to enhance marketing capabilities, emphasizing "desire at scale" and creating markets through innovative marketing approaches [22][24] - The leadership team has been refreshed, with a focus on accountability and performance culture [15][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent volume growth of 3% in the U.S. despite challenging market conditions [41] - The company anticipates an acceleration in volume performance in the second half of the year, particularly in Indonesia and China [44][45] - There are expectations for continued growth in India, aligning volume growth with GDP growth [49] Other Important Information - The company has made significant changes to its organizational structure, reducing its white-collar workforce by 18% and targeting $800 million in savings by 2026 [12][15] - The focus on e-commerce is increasing, with 20% of business already in this channel, and specific hubs being developed for Amazon, TikTok, and quick commerce in India [33] Q&A Session Summary Question: Can the company continue to outperform in the U.S. market? - The company believes it can maintain a consistent volume growth of 3% and has a strong portfolio with significant exposure to beauty and personal care [41] Question: What are the expectations for volume growth in the second half of the year? - Management expects an acceleration in volume growth in the second half, particularly in Indonesia and China, while Latin America may face challenges [44][45] Question: How does the company plan to enhance desirability in its food segment? - The company aims to apply the concept of desirability across all categories, emphasizing indulgence in foods and premium experiences in home care [51]

Financial Data and Key Metrics Changes - The company reported a revenue of $61 billion for 2024, with a profit of $11 billion and an underlying operating margin of 18.4% [3][4] - Cash generation was strong, with $7 billion in cash returned to shareholders, including $4.3 billion in dividends and $1.5 billion in share buybacks [4][5] - The return on invested capital was noted at 18.1%, indicating a strong competitive position [5] Business Line Data and Key Metrics Changes - The company operates five business groups: Youth and Wellbeing, Personal Care, Home Care, Foods, and a fifth group being separated, which generated $8.3 billion [4][7] - The focus is shifting towards 30 power brands that account for 75% of revenue, with a reported volume growth of 3.8% in these brands last year [9][10] - The gross margin is expected to approach 47% post-separation of the Ice Cream business, with an anticipated 100 basis points increase in return on invested capital [8] Market Data and Key Metrics Changes - The U.S. and India are identified as key growth markets, with the U.S. expected to contribute 21% and India 14% to revenue after recent acquisitions [17][18] - In the U.S., the company has seen significant growth, with a 20% increase in sales with Amazon and a strong performance in beauty and personal care [42] - India is projected to be a major growth driver, with over 50% market share in several categories and a focus on digitizing distribution [20][21] Company Strategy and Development Direction - The company is transitioning to a category-led organization, focusing on premiumization and reducing exposure to value segments [16][17] - There is a strong emphasis on building a marketing and sales machine, with a new philosophy centered around "desire at scale" [22][29] - The leadership team has been refreshed, with a focus on accountability and performance culture [15][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent volume growth, targeting 3% to 5% in the U.S. and a strong performance in India [41][49] - The company is addressing challenges in specific markets, such as Indonesia and Latin America, with strategic adjustments to improve performance [44][46] - Future expectations include a focus on beauty and personal care, with a commitment to maintaining a competitive edge in the market [36][37] Other Important Information - The company has reduced its white-collar workforce by 18% and is on track to achieve $800 million in savings by the end of 2026 [12] - Significant investments have been made in brand and marketing, with a 33% increase in marketing budgets over the last four to five years [12][13] - The company is leveraging influencer marketing, aiming for one influencer per zip code in India, with a robust screening process in place [54] Q&A Session Summary Question: Can the company continue to outperform in the U.S. market? - The company believes it can maintain consistent volume growth, with a strong portfolio and significant exposure to e-commerce [41] Question: What are the expectations for volume growth in the second half of the year? - Management anticipates acceleration in volume growth, particularly in Q4, with improvements noted in key markets like Indonesia and China [44][45] Question: How does the company plan to enhance desirability in its food segment? - The company aims to apply the concept of desirability across all categories, emphasizing indulgence in foods and premium experiences in home care [51]