Procter & Gamble's Chief Financial Officer, Andre Schulten, welcomes listeners to the quarter-end conference call and reminds them of the forward-looking statements and non-GAAP financial measures that will be discussed. He then summarizes the company's strong first quarter results, including broad-based organic sales growth, global market share growth, and strong earnings growth. Schulten also mentions that the company is on track to meet its fiscal year guidance and highlights the contributions of pricing and productivity savings to the results.

The company experienced strong top-line growth in all 10 product categories, with low to double digit increases. Geographically, five out of seven regions saw growth, with a 6% decline in Greater China. The US and Europe focus markets had the highest organic sales growth. Despite weak consumer confidence, the company's enterprise markets, particularly in Latin America and Europe, saw significant growth. The US and European markets also saw increases in value and volume share. Core earnings per share increased by 17% and 21% on a currency-neutral basis.

In the third paragraph, the company discusses their strong operating performance, with a 240 basis point increase in core operating margin. They attribute this to gross margin expansion and productivity improvements, but note challenges such as increased marketing investments and foreign exchange impacts. They also mention returning cash to shareholders and their commitment to excellence and productivity. The company emphasizes their integrated strategy and portfolio of daily use products, as well as their willingness to adapt and embrace new technologies. They also highlight their organization's empowerment, agility, and accountability.

The company is continuously working on improving their integrated strategy, which includes supply chain, digital acumen, environmental sustainability, and employee value. They believe this will lead to sustainable growth and are committed to delivering superior products and productivity. The company expects the environment to continue to be challenging, with volatile input costs, currencies, and consumer and geopolitical dynamics. They estimate that commodities will be a tailwind of $800 million after tax in fiscal '24, but there have been some changes in this estimate due to factors such as relief on some commodities and higher costs for others. Foreign exchange rates and inflation in wages and benefits are also expected to have a negative impact, as well as higher net interest expense.

The company is maintaining its guidance for organic sales, EPS growth, and cash return to shareholders for the fiscal year. They expect organic sales to grow by 4-5%, with a normalization in market growth and less pricing benefit in the next two quarters. The outlook for core EPS growth is 6-9%, despite a $600 million headwind from foreign exchange. The company plans to pay dividends and repurchase stock, returning $14-15 billion to shareholders. The outlook is based on current market conditions and potential risks such as currency weakness, commodity cost increases, and geopolitical disruptions. The back half of the year is expected to see less pricing and commodity benefit, as well as increasing FX headwinds.

The company plans to reinvest in their business and remain confident in their strategy despite potential challenges in the market. They expect a slower growth rate in the market, with a stronger contribution from volume, pricing, and mix. P&G aims to grow ahead of the market and is focused on delivering balanced top and bottom-line growth and value creation for shareholders.

The company expects to be slightly ahead of the market in terms of volume and price. They believe their strategy of pricing with innovation is working and will continue to drive growth. They anticipate a drop in price contribution in quarter two due to expected market growth, but plan to offset it with volume growth. The only differential between enterprise and focus markets is foreign exchange, and they will continue to price accordingly. They are seeing favorable pricing behavior from competitors and do not anticipate retailer pushback due to favorable commodities.

The speaker discusses the expected return to volume growth in the market and the role of pricing and promotions in driving this growth. They mention the stability of volumes globally, with the exception of Greater China, and the decrease in promotion activity compared to pre-COVID levels. They also mention the impact of commodity costs and foreign exchange on pricing dynamics and the lack of retailer pushback. The speaker concludes by stating that their model of innovation and value creation for retailers and shoppers is working well.

The speaker discusses the current state of the company's volume growth and notes a 20 basis point improvement in comparison to previous quarters. They also mention strong performance in the US, Europe, Latin America, and India. The speaker then addresses concerns about the Chinese market, acknowledging that it is still recovering and facing challenges, but also emphasizing the company's belief in the long-term potential of the market.

The speaker discusses the company's strong presence in China and their expectations for growth in the Chinese market. They also mention their focus on the European market and their success in maintaining market share despite pressure from private label brands. They highlight their 15% organic sales growth in Europe, driven by a combination of volume growth and strong price/mix.

In the first quarter, the company has seen 40 basis points of share growth across the same geographies, which is a positive sign. Private label shares in Europe are also growing, but the company's strong portfolio and presence in all relevant channels allows them to effectively compete. The CEO also mentioned that they are encouraged by the combination of factors driving growth and are confident in their ability to meet the upper end of their guidance range.

The company plans to continue investing in opportunities that will generate attractive returns, particularly in areas that drive market growth, such as products, innovation, media spending, and communication with consumers. They have had success in driving growth in the bedwetting category and will continue to invest in media and supply chain resilience to maintain a competitive advantage. All investments will be made with a focus on return on investment and disciplined decision-making.

During a conference call, Andrea Teixeira of JPMorgan asked Andre Schulten about P&G's volume and pricing expectations for the coming quarters. Schulten explained that they are expecting a mid-single-digit growth in China and a gradual improvement in SK-II sales. However, the volume impact of SK-II is limited due to its high unit sales. Schulten also mentioned that they are not relying on China's recovery as the main factor for growth in the coming quarters. In terms of pricing, P&G expects a 3-4% decline in its contribution to organic sales growth in the next two quarters.

The company expects volume to improve sequentially and they see progress in the right direction. The consumer remains resilient and the company's portfolio is serving them well. They are able to add value in all tiers and have not seen a significant change in consumer spending preferences.

The company believes that consumers will continue to trade up within their product portfolio, even if private label shares expand. They plan to grow through investing in innovation and media support, rather than driving price promotions. They see in-store support as a strategic tool to drive regimen steps and incremental consumption. The company has seen a reacceleration in laundry and personal healthcare categories, and they believe these trends will continue in the future.

Andre Schulten discusses the encouraging results in the laundry business, specifically in the US market. He mentions strong growth in value and volume share, record high fabric enhancer shares and laundry consumption, and driving 70% of category growth in laundry and 100% in fabric enhancers. He believes this growth is sustainable due to their business model and investments in supply capabilities. He also mentions a question on gross margin.

Andre Schulten, speaking about the company's strong performance in the quarter, mentioned that there was a significant increase in gross margin, driven by high price contribution and commodity help. However, he cautioned that the price contribution will ease in the coming quarters and there will be headwinds from foreign exchange rates. He also mentioned that the company will continue to drive productivity and innovation. In response to a question about the performance in Latin America, Schulten stated that there was 19% growth and they are seeing a return to volume growth. He also mentioned that the growth was a combination of category performance and share gains.

During a recent earnings call, Andre Schulten, a representative from Procter & Gamble, discussed the company's success in the Latin America market, attributing it to their focus on innovation and pricing for foreign exchange and commodity impacts. Schulten also mentioned challenges in Argentina, but overall painted a positive picture for the region. In response to a question about China, there was no indication of changes in the company's strategy for targeting the growing middle class. Lastly, there was no mention of any changes in the company's decision-making process regarding gross margin and marketing spend.

The speaker is discussing Procter & Gamble's performance in the US during the previous quarter. They note that the company saw both volume and value growth, and that this follows a strong year in 2020 despite COVID-related challenges. The speaker mentions that Procter & Gamble has previously stated a sustainable growth rate of 4-6% in the US.

Andre Schulten discusses the growth prospects of the US market and expresses confidence in the business model being successful. He believes that the company will continue to drive market growth and increase sales, while also creating business instead of taking it from others. He reiterates his confidence in the US market and mentions that he and John will be available for further questions.

This summary was generated with AI and may contain some inaccuracies.