Share Nov 25, 2025 9:15 AM Eastern Standard Time P&G to Webcast Presentation From the Morgan Stanley Global Consumer & Retail Conference, December 2 CINCINNATI--(BUSINESS WIRE)--Andre Schulten, Chief Financial Officer of The Procter & Gamble Company (NYSE:PG) will be a featured speaker at the Morgan Stanley Global Consumer & Retail Conference on Tuesday, December 2, 2025 at 8:45 A.M. Eastern Time (ET). About Procter & Gamble P&G serves consumers around the world with one of the strongest portfolios of trust ...

Core Viewpoint - Procter & Gamble (NYSE: PG) is considered a viable investment opportunity despite current market challenges, with a price-to-earnings ratio of 21 and a dividend yield of approximately 3% [1][2]. Company Overview - Procter & Gamble is a leading provider of branded consumer goods across various sectors, including beauty, grooming, health care, home care, and family care, with well-known brands such as Tide, Pampers, Gillette, Crest, Olay, and Febreze [2]. Market Context - Concerns exist regarding the consumer packaged goods sector, which is facing challenges such as high inflation and low growth, impacting stock performance [2]. - The current yield of Procter & Gamble is noted at 2.85%, with the company possessing the scale and innovation to reduce costs [2].

Group 1 - Procter & Gamble (NYSE: PG) is considered a stock with potential for investment, particularly when purchased at its 52-week low [1] - The current yield of Procter & Gamble is 2.87%, with a suggested strategy to buy shares in increments as the yield increases to 3%, 3.25%, and 3.5% [1] - The company produces a wide range of consumer goods, including personal care, grooming, health, fabric, home, and baby products under well-known brands such as Pantene, Gillette, Crest, Tide, Pampers, and Bounty [2] Group 2 - While Procter & Gamble is acknowledged as a viable investment, certain AI stocks are believed to offer greater upside potential and less downside risk [3]

Core Insights - Dividend Kings represent a select group of companies that have consistently provided shareholders with 50 years of dividend growth, demonstrating resilience through economic downturns and market volatility [1] - Not all Dividend Kings are currently considered good investment opportunities; some have stronger cash flows, more stable payout ratios, and higher yields, which are essential for investment decisions [2] Company Analysis - Procter & Gamble Company (PG) is highlighted as a Dividend King, known for its extensive range of consumer goods, including health, baby, fabric, home, beauty, and grooming products [6] - The company has a strong consumer presence, with popular products such as Pampers, Tide, and Crest, and recently launched the Forever Roll toilet paper, which features 1,700 sheets designed for convenience [7]

Core Insights - Procter & Gamble (P&G) exceeded expectations in organic sales and margins for Q1 of fiscal 2026, maintaining its full-year revenue and EPS guidance unchanged [1] - Bank of America analysts reaffirmed a Buy rating and increased the price target to $175, citing consistent execution and innovation-driven market share gains despite a slowdown in consumption [1][10] Consumption Trends - Consumption trends for P&G softened during the quarter, decreasing from approximately 2.4% to a range of 1.8-1.9%, with near-term growth projected between 1.5% and 2% [2] Competitive Response - In response to increased competitive promotions, P&G is focusing on innovation-led growth, launching new products such as Tide liquid and Tide EVO in laundry care, and Pampers and Luvs in baby care [3] Market Share Performance - Six out of P&G's seven regions either maintained or expanded market share, with a notable 7% gain in Latin America; Europe remained stable, while Asia Pacific and the Middle East experienced slight declines [4] Tariff and Cost Expectations - P&G's expected tariff-related costs have been revised to $500 million, down from $750 million previously, due to material exclusions and adjusted sourcing strategies [5] Growth Outlook - The second quarter of 2026 is anticipated to be the weakest growth period of the year, but management expects a rebound in the second half, driven by ongoing innovation and supply chain improvements [6] Financial Estimates - Bank of America has slightly increased its EPS estimates for 2026, 2027, and 2028 to $7.00, $7.35, and $7.75, respectively, reflecting the positive impact of the first-quarter performance [8] - The brokerage forecasts second-quarter organic sales growth of 0.5%, down from a previous estimate of 1.5%, and a 2026 organic growth of 1.6%, reduced from 2% [9] Valuation and Price Target - Bank of America maintains a Buy rating on P&G with a price target of $175, based on a 24.5x CY26E P/E multiple, reflecting a 20% valuation premium for household and personal care peers due to P&G's long-term growth potential [10]

Core Insights - Procter & Gamble (P&G) exceeded Wall Street expectations for first-quarter results, driven by strong demand for beauty and hair-care products despite economic uncertainty and higher prices [1] - The company halved its annual tariff cost estimate to approximately $400 million after tax due to Canada lifting retaliatory duties on U.S. goods, leading to a 3% increase in P&G's shares [1] Financial Performance - P&G reported core earnings per share of $1.99, surpassing estimates by 9 cents, supported by a strategy of introducing improved products at higher prices [6] - The company experienced a 50-basis-point decline in operating margins year-over-year, attributed to higher commodity costs and measures to cater to value-conscious consumers [5] Consumer Behavior - There is a bifurcation in consumer behavior, with financially stable shoppers opting for larger pack sizes while lower-income consumers are purchasing smaller packs for essential items [4] - The overall consumer environment is described as "not great, but stable," with a slight slowdown in U.S. consumption across P&G's categories [5] Pricing Strategy - P&G has raised prices in the U.S. to mitigate tariff impacts while lowering prices in Canada following the cancellation of retaliatory tariffs [3] - The company is facing increased discounting from competitors in the U.S. and Europe, particularly in fabric-care and baby-care products, prompting a focus on offering more affordable options [4]

Financial Data and Key Metrics Changes - The first quarter results reflect 40 consecutive quarters of organic sales growth, with organic sales rounded up to 2% and core earnings per share (EPS) at $1.99, up 3% versus the prior year [3][7] - Core gross margin decreased by 50 basis points, while core operating margin remained equal to the prior year [7] - Adjusted free cash flow productivity was 102%, with $3.8 billion returned to shareholders, including $2.55 billion in dividends and $1.25 billion in share repurchases [7][20] Business Line Data and Key Metrics Changes - Skin and personal care led growth with high single-digit increases, while hair care, grooming, personal health care, home care, and baby care each grew low singles [4] - Oral care and feminine care were in line with the prior year, while fabric care and family care were down low single digits [4] - Personal health care in Latin America grew organic sales by 15%, driven by strong execution and innovation [11] Market Data and Key Metrics Changes - Organic sales in North America were up 1%, while European focus markets' organic sales were equal to the prior year [4][5] - Greater China organic sales grew 5%, with Pampers and SK-II each growing double digits [5] - Latin America organic sales were up 7%, with strong growth across Mexico and Brazil [6] Company Strategy and Development Direction - The company is focusing on increased investment in its integrated growth strategy, emphasizing consumer-centric approaches and innovation [8][16] - Plans include significant upgrades to core products, such as Tide's liquid detergent, and the launch of Tide Evo, a new laundry detergent [9][10] - The restructuring program aims to create a more agile organization, with a target of reducing up to 7,000 non-manufacturing roles [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging competitive environment, particularly in the U.S. and Europe, and emphasized the need for integrated superiority through innovation [8][30] - The company maintains guidance for fiscal 2026, expecting organic sales growth of 2% to 4% and core EPS growth in line with that range [17][18] - Management expressed confidence in the long-term strategy, focusing on brand strength and category growth despite current market challenges [16][19] Other Important Information - Global aggregate market share was down 30 basis points, with 24 of the top 50 category country combinations holding or growing share [6][38] - The company is actively managing its portfolio to enhance U.S. dollar-based returns and has made several strategic exits in low-performing categories [14][73] Q&A Session Summary Question: How is the restructuring being received internally? - Management indicated that the organization is adapting well to the restructuring, with clear plans in place for reducing roles and enhancing agility [24][25] Question: What is the competitive landscape in North America? - Management acknowledged heightened competition in fabric care and baby care, emphasizing the need for integrated superiority and innovation to drive growth [30][31] Question: What are the implications of the global market share decline? - Management noted that while global market share is down, absolute share in the U.S. has been increasing, indicating a positive trend despite competitive pressures [38][39] Question: How is the company addressing consumer affordability? - Management clarified that value, defined as price over integrated performance, is central to their strategy, with a focus on optimizing price points and product offerings [47][49] Question: What is the outlook for Greater China? - Management reported strong progress in China, with significant growth in key categories, driven by effective local strategies and innovations [44][45] Question: What are the dynamics in Western Europe and Latin America? - Management described Western Europe as similar to North America, with muted growth, while Latin America continues to show strong performance, particularly in Brazil and Mexico [72][73]

Company Overview - Enbridge (ENB) is valued at $143.9 billion and is recognized for its long and reliable dividend track record in North America, primarily transporting oil and natural gas through a vast pipeline network [2] - Realty Income (O) is a real estate investment trust (REIT) focused on freestanding, single-tenant commercial properties, known for its monthly dividend payments and stable rental income [4][5] - Johnson & Johnson (JNJ) has a diverse business portfolio focusing on pharmaceuticals and MedTech, with a strong history of dividend payments [9][10] - PepsiCo (PEP) is known for its global brand presence and reliable dividend payouts, having increased its dividend for 53 consecutive years [11][12] - Procter & Gamble (PG) has a robust portfolio of trusted brands and has paid and increased dividends for 70 consecutive years, earning the title of Dividend King [14][15] Dividend Performance - Enbridge offers a forward dividend yield of 5.8%, significantly higher than the energy industry average, supported by stable cash flows from long-term contracts [1] - Realty Income has a current dividend yield of 5.45%, making it one of the most attractive REITs [4] - Johnson & Johnson's dividend yield is around 2.69%, above the healthcare sector average of 1.58%, with 63 years of consecutive increases [10] - PepsiCo's dividend yield stands at 3.7%, backed by consistent earnings and free cash flow [12] - Procter & Gamble's dividend yield is approximately 2.79%, supported by strong free cash flow and a cautious payout ratio of about 57% [14] Analyst Ratings and Price Targets - Enbridge stock is rated a consensus "Moderate Buy" with an average target price of $49.91, suggesting a potential 6% increase from current levels [7] - Realty Income stock is generally viewed as a dependable dividend stock, with a focus on predictable cash flow and steady growth [5] - Johnson & Johnson has a "Moderate Buy" rating with a mean target price of $199.83, indicating a potential upside of 3% [10] - PepsiCo is rated a "Moderate Buy" with a mean target price of $154.31, suggesting a potential increase of 12% [13] - Procter & Gamble stock is also rated a "Moderate Buy," with a mean target price of $170.14, indicating a potential upside of 12% [16]

Core Insights - Investing in the stock market is a viable strategy for long-term wealth accumulation, emphasizing the importance of patience, discipline, and investing in quality businesses [2] - Dividend-paying companies tend to outperform non-dividend payers while exhibiting lower volatility, making them attractive for investors seeking income and growth [3][8] Company Summaries - **Coca-Cola (NYSE: KO)**: - Coca-Cola boasts a strong global brand portfolio and extensive distribution network, operating in over 200 countries, which allows for steady cash flow generation [4] - The company has increased its dividend payment for 63 consecutive years, reflecting robust free cash flow and disciplined capital management [5] - Strategic expansion into low-sugar drinks, coffees, and energy beverages enhances growth opportunities while maintaining brand dominance [5] - **Procter & Gamble (NYSE: PG)**: - Procter & Gamble is recognized for its reliability in dividend payments, having paid uninterrupted dividends for over 135 years and increased them for 69 consecutive years [6] - The company's portfolio includes well-known consumer brands like Tide, Pampers, Gillette, and Crest, which provide consistent cash flow even during economic downturns [7] - Procter & Gamble converts over 90% of its earnings to free cash flow, enabling it to fund dividends and share buybacks without financial strain [7]

Core Viewpoint - Sunflower Bank, N.A. has reduced its stake in Procter & Gamble by selling 106,032 shares for approximately $16.56 million during Q3 2025, leaving it with a minimal holding of 3,777 shares valued at $580,336 as of September 30, 2025 [2][3]. Company Overview - Procter & Gamble is a global leader in consumer packaged goods, with a diverse product lineup and extensive distribution network [4]. - The company generates revenue primarily through the sale of consumer packaged goods, targeting a broad base of global consumers [6]. Financial Performance - Procter & Gamble reported a revenue of $84.28 billion and a net income of $16.07 billion for the trailing twelve months (TTM) [3]. - The company's dividend yield is currently at 2.74%, which is the highest level since late 2022 [9]. Stock Performance - As of October 9, 2025, Procter & Gamble's stock price was $150.58, reflecting an 11.0% decline over the past year, underperforming the S&P 500 by 25.3 percentage points [3][11]. Strategic Initiatives - The company is undergoing a restructuring aimed at streamlining operations and boosting profits, which could positively impact stock performance if executed well [10]. - Procter & Gamble has announced a collaboration with Universal Pictures to introduce movie-themed scents, which may enhance brand visibility and consumer engagement [10].