Group 1 - Procter & Gamble's (P&G) Beauty Division CEO R. Alexandra Keith will retire in February 2026, with Freddy Bharucha set to take over on December 1, 2023, leading a $15 billion global beauty product portfolio [2] - The Beauty Division includes brands such as SK-II, Olay, and Pantene, and is one of five main business segments within P&G [2] - Freddy Bharucha has been with P&G since 1995, holding various positions, including Global President of Personal Care prior to his upcoming role [2] Group 2 - For the fiscal year 2025, P&G's Beauty Division reported sales of 107.398 billion yuan, a 2% year-over-year decline, and net income of 19.486 billion yuan, down 8% [3] - The fourth quarter showed a slight increase of 0.2% in sales and a 4% rise in net profit, indicating initial success from strategic adjustments [3] - The leadership change in the Beauty Division is part of P&G's restructuring plan to ensure a smooth transition in its beauty business, amidst significant personnel changes across the company [3]

Core Viewpoint - Procter & Gamble (P&G) is undergoing significant leadership changes in its beauty division, reflecting concerns about the division's performance and the company's broader restructuring efforts [1][4]. Leadership Changes - Freddy Bharucha, the current President of Global Personal Care, will replace Alex Keith as CEO of the beauty division, effective December 1, 2025, as Keith plans to retire on February 20, 2026 [3][4]. - The beauty division, which includes brands like SK-II, Olay, and Pantene, has seen declining performance, with net sales of 107.398 billion yuan in FY2025, down 2% year-over-year, and net income of 19.486 billion yuan, down 8% [3][4]. Company Performance - P&G's overall growth has been slowing in recent years, prompting the company to push for transformation and strategic adjustments [5]. - The company has also announced a change in its CEO, with Jon Moeller stepping down and Shailesh Jejurikar taking over on January 1, 2026 [5]. Industry Context - The beauty industry is experiencing a significant turnover in leadership, with over 100 executives replaced across major companies like L'Oréal, Estée Lauder, and Shiseido in 2025 [5]. - P&G's leadership changes are part of a broader trend of frequent executive turnover, which is believed to enhance organizational flexibility and strategic agility [6]. Market Dynamics - The Chinese cosmetics market is projected to reach a retail total of 600 billion yuan in 2024, growing by 8.7% year-over-year, making it the second-largest market globally after the U.S. [7]. - Local brands are gaining market share, increasing from 35% in 2019 to 48% in 2024, posing challenges for international brands like P&G [7]. Pricing Strategy - To address cost pressures, P&G has informed major retailers of price increases on some products starting in August, with about 25% of products in the U.S. seeing a price hike of approximately 5% [7][8]. - The company has noted that organic sales growth was 2% in the April to June period, driven by price increases and product mix optimization [8].

Core Insights - Procter & Gamble (P&G) is undergoing significant leadership changes in its beauty division, with Freddy Bharucha set to replace Alex Keith as CEO, effective December 1, 2025, as Keith plans to retire on February 20, 2026 [1][4] - The beauty division, which includes brands like SK-II and Olay, has faced declining performance, with net sales of 107.398 billion yuan in fiscal year 2025, down 2% year-over-year, and net income of 19.486 billion yuan, down 8% [3][4] - The leadership transition reflects P&G's concerns about the beauty division's growth amid increasing competition and a shift in market dynamics from growth to a more competitive landscape [4][5] Company Overview - P&G's beauty division is part of a larger structure that includes five main segments: beauty, grooming, health care, fabric and home care, and baby, feminine, and family care [3] - Freddy Bharucha has been with P&G since 1995 and has held various leadership roles, contributing to the growth of the personal care and beauty business over the years [3][4] - The company is also experiencing broader organizational changes, including the upcoming transition of CEO Jon Moeller to COO Shailesh Jejurikar, effective January 1, 2026 [4][6] Industry Context - The beauty market has shifted from an incremental growth phase to a more competitive environment, requiring brands to focus on customer acquisition and product innovation to drive sales [5] - P&G is at a critical juncture, navigating global business restructuring and brand strategy adjustments to maintain its leadership position in the beauty industry [6]