The Procter & Gamble Company (PG) 21st Annual dbAccess Global Consumer Conference (Transcript)

Procter & Gamble Company Conference Call Summary Company Overview - Company: The Procter & Gamble Company (NYSE: PG) - Event: 21st Annual dbAccess Global Consumer Conference - Date: June 4, 2024 - Participants: - Andre Schulten - Chief Financial Officer - Shailesh Jejurikar - Chief Operating Officer - Steve Powers - Deutsche Bank Key Points Financial Performance - Fiscal 2023 marked the fifth consecutive year with organic sales growth of 5% or better, with organic sales in focus markets up 4% and enterprise markets up 8% [5][6] - Core EPS increased by 15%, and 19% on a currency-neutral basis, driven by productivity improvements [7] - Over $10 billion returned to shareholders in dividends and repurchases, with a 7% increase in dividends announced [9] Market Dynamics - The company is experiencing broad-based momentum, with nine out of ten categories growing organic sales [6] - Global aggregate market share has remained flat or increased over the past three, six, and twelve months [6] - The company anticipates continued volatility in the market due to input costs, currencies, and geopolitical dynamics, particularly in Greater China and parts of Europe and the Middle East [10] Strategic Focus - The strategy emphasizes a portfolio of daily-use products that provide cleaning, health, and hygiene benefits [11] - Commitment to "irresistible superiority" across five vectors: product, package, brand communication, retail execution, and value for each price tier [11] - The company is focused on driving efficiency and productivity improvements, with over $1.3 billion in productivity savings achieved through the third quarter [13] Supply Chain Innovations - Introduction of Supply Chain 3.0, aimed at achieving 98% on-shelf availability and $1.5 billion in gross productivity savings annually [25] - Emphasis on collaboration with retailers to optimize the entire supply chain, reducing costs and improving service [26][27] - Automation technologies, including driverless trucks and autonomous mobile robots, are being tested to enhance supply chain efficiency [29][30] Consumer Trends - The U.S. market is showing a growth trajectory of 4.5% to 5%, with consumers not significantly trading down to private labels [34][36] - In Latin America, particularly Brazil and Mexico, consumption remains strong, while Argentina presents unique challenges [38] - In China, consumer confidence is weak, but the company is focusing on enhancing product offerings to drive growth [46] Challenges and Opportunities - The company acknowledges share loss in certain categories, such as diapers and laundry, but remains confident in its ability to innovate and address these challenges [41][42] - The focus on consumer needs and performance-driven categories is expected to sustain growth despite market pressures [36][37] Future Outlook - The company aims for mid-single-digit organic sales growth and mid to high-single-digit core EPS growth, with productivity improvements expected to support these goals [54] - Cautious optimism is noted for fiscal 2025, with a mixed outlook due to strong markets alongside ongoing challenges [54] Additional Insights - The company is actively managing its portfolio, including divesting from non-core businesses in certain markets to enhance shareholder value [18] - The Hair Care segment in Mexico has seen significant growth, doubling sales and quadrupling profits over four years [20] - The company is leveraging consumer insights to drive product innovation, such as the Always Flexform in feminine care, contributing to organic sales growth [12] This summary encapsulates the key insights and strategic directions discussed during the Procter & Gamble conference call, highlighting the company's performance, market dynamics, and future outlook.