P&G(PG)2024-02-22 19:00Procter & Gamble Company (NYSE: PG) CAGNY Conference Summary Company Overview - Company: Procter & Gamble Company (P&G) - Date: February 22, 2024 - Participants: Jon Moeller (Chairman, President & CEO), Andre Schulten (CFO), Jon Chevalier (SVP of Investor Relations) Key Points Industry Performance - P&G has consistently grown or maintained market share in a majority of its top 50 category/country combinations since 2018, continuing this momentum into the recent quarter [2][4] - Fiscal 2023 marked the fifth consecutive year of 5% or better organic sales growth, with a strong start to fiscal 2024, achieving over 5% organic sales growth in the first half [4][5] - The company expects to deliver towards the top end of its 4% to 5% guidance range for the year as market growth rates normalize [4] Financial Highlights - Quarter two marked the 22nd consecutive quarter of 4% or better organic sales growth [4] - Core earnings per share increased by 16% year-to-date, with a 19% increase on a currency-neutral basis [6] - P&G returned over 4.5 billion in dividends and $2.5 billion in share repurchases [12] Market Dynamics - Global aggregate market share increased by 30 basis points, with 29 of the top 50 category/country combinations holding or growing share [6] - The company anticipates a reduction in pricing contribution to top-line growth by 1 to 2 percentage points in the latter half of the year [5] - P&G is experiencing strong volume growth in North America and Europe, with organic sales in focus markets up 5% and enterprise markets up 10% [5] Strategic Focus - P&G is committed to an integrated growth strategy that emphasizes cost discipline, productivity, and prudent capital allocation [3] - The company continues to invest in innovation, with a focus on superior product development and effective marketing strategies [10][15] - P&G's productivity initiatives have allowed for increased investment in demand creation, with advertising spend expected to rise by approximately 70 basis points compared to fiscal 2019 [8] Innovation and Product Development - P&G has launched several successful innovations, such as Charmin Ultra Soft and GilletteLabs razors, contributing to significant market growth [16][17] - The company is leveraging digital tools and AI to enhance product development and marketing efficiency, reducing design timelines significantly [41][42] - P&G's commitment to sustainability is evident in innovations like Ariel Platinum PODS, which improve wash results while reducing environmental impact [28][29] Challenges and Outlook - The company anticipates continued volatility in input costs, currency fluctuations, and geopolitical dynamics, particularly in Greater China and parts of Europe [13] - Despite these challenges, P&G remains confident in its strategy and ability to deliver balanced growth and value creation for shareholders [32] Market Opportunities - P&G sees significant growth potential in international and emerging markets, with Enterprise Markets growing at rates one-third to twice as high as Focus Markets [51] - The company is focused on maximizing value growth in established brands while exploring opportunities in smaller brands [51] Conclusion - P&G's strategic focus on innovation, productivity, and market growth positions it well for continued success in a challenging environment, with a commitment to delivering superior value to consumers and shareholders alike [32]