P&G(US:PG)2025-10-24 13:32Financial 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]