P&G(PG)2023-02-26 01:25Procter & Gamble Company (NYSE: PG) CAGNY 2023 Conference Call Summary Company Overview - Company: Procter & Gamble Company (P&G) - Date: February 23, 2023 - Participants: Jon Moeller (Chairman, President and CEO), Andre Schulten (CFO), John Chevalier (VP, IR) Key Industry Insights - P&G has navigated several challenges including a global pandemic, input cost inflation, and supply chain issues while achieving growth ahead of peers [3][4] - The company has focused on simplifying its organizational structure, innovating products, and enhancing digital and supply chain capabilities [3] Financial Performance - Organic Sales Growth: Up 6% in the first half of the fiscal year despite market pressures in Greater China and reduced portfolio in Russia [4] - Core Earnings Per Share: Down 3%, primarily due to 26 points of headwinds from material costs, foreign exchange, and transportation [4] - Market Share: Global aggregate market share remains stable, with 29 out of 50 category-country combinations holding or growing share [5] - North America Sales: Exceeded 40 billion for the fiscal year, up from 30 billion four years ago [6] Cash Return to Shareholders - P&G has paid dividends for 132 years and raised dividends for 66 consecutive years, returning nearly 10.5 billion to shareholders through dividends and share repurchases [7] Strategic Outlook - P&G maintains its outlook for core earnings per share growth in the range of flat to +4% versus the prior year [8] - The company is committed to balanced growth across top and bottom lines, focusing on productivity and pricing strategies [9] Market Dynamics - Input costs are moderating but remain significantly higher year-on-year, with foreign exchange continuing to be a headwind [10] - Consumer dynamics vary by region, with U.S. consumers showing resilience while European markets have softened due to high inflation [11] Innovation and Brand Superiority - P&G emphasizes the importance of brand superiority to drive category growth, investing in innovation and productivity to offset cost challenges [12][13] - The company aims to deliver superior value through sustained investment in brands, even in an inflationary environment [12] Regional Performance - China: Expected to return to mid-single-digit growth rates in the long term, with a modest recovery anticipated post-COVID [11] - Europe: Consumers are under more pressure compared to the U.S., with a need for strategic adjustments in response to market conditions [59] Sustainability Initiatives - P&G is committed to environmental sustainability, with initiatives to reduce plastic usage and improve recycling processes [31][32][33] Digital Transformation - The company is leveraging digital tools to enhance marketing effectiveness and improve retail execution [35] Conclusion - P&G's integrated strategies are designed to drive balanced growth and value creation, focusing on consumer needs and market dynamics [37][38]