Edward Lewis

Edward Lewis asked if Haleon's return to its medium-term guidance range of 4%-6% organic sales growth is solely dependent on U.S. market improvement, or if it can be achieved with a structurally slower U.S. market but greater contribution from other regions like India and China, given the expressed confidence in those markets.

Answer

CEO Brian McNamara stated that he expects the U.S. to perform better, acknowledging that while Haleon outperformed the market in 2025, there's room for improvement. He anticipates the U.S. environment will improve, nearing the bottom end of Haleon's growth algorithm. He also expects emerging markets, including India and China, to continue being strong contributors, with the low-income consumer strategy gaining traction. McNamara affirmed that nothing has fundamentally changed regarding the 4%-6% medium-term guidance. He clarified that the current 3%-5% guidance for 2026 reflects market uncertainty, with Q1 expected to be softer due to cold and flu, aiming for the middle of that range.

Edward Lewis asked about Haleon's medium-term guidance of 4%-6% organic sales growth. He questioned whether achieving this range is entirely dependent on the U.S. market improving, or if a structurally slower U.S. market could be offset by greater contribution from the rest of the world, given the expressed confidence in India and China.

Answer

Brian McNamara, CEO, stated that he expects the U.S. to perform better, acknowledging that while Haleon outperformed the market in 2025, there's room for improvement. He anticipates the U.S. environment will improve over the next couple of years, potentially reaching the lower end of Haleon's algorithm growth. Beyond the U.S., he expects emerging markets to continue as strong contributors, with the low-income consumer strategy gaining traction. McNamara affirmed that nothing has fundamentally changed regarding the medium-term strategy and opportunities, but the 3%-5% guidance for this year reflects market uncertainty and a softer Q1 due to cold and flu, with expectations to be in the middle of that range.

Edward Lewis asked if Clorox is able to pitch new innovative products at historic premium prices, or if the current environment gives pause when considering potential pricing levels for these new offerings.

Answer

Linda Rendle (Chairman and CEO) stated that Clorox conducts extensive testing to determine the right value mix for innovation, considering benefits, differentiation, and brand strength. She confirmed that many innovations launch with a price premium, and consumers are willing to pay for superior products and experiences, citing examples like Clorox wipes and ToiletWand. However, she also emphasized the need to appeal to value-seeking consumers by optimizing the value equation for core businesses, removing non-value-adding costs, and getting pricing/sizing right.

Edward Lewis asked if Clorox is able to pitch new products at historic premium levels, or if the current environment gives pause when considering potential pricing levels for innovation.

Answer

Linda Rendle, Chairman and CEO, stated that Clorox conducts extensive testing to determine the right value mix for innovation, considering benefits, differentiation, and brand strength. She confirmed that many innovations are launching with a price premium, and consumers are willing to pay for superior products and experiences, citing examples like Clorox wipes and toilet wands leading category growth. However, she also emphasized the need to appeal to consumers seeking the lowest price per use by optimizing the value equation on core businesses, removing non-value-adding components, and getting pricing/sizing right.

Edward Lewis inquired about the significant 7 percentage point gap between international and North America gross margins, asking if international gross margin represents a major opportunity and what the key drivers for improvement are.

Answer

Chairman and CEO Mike Hsu confirmed international margins are a key opportunity. President and COO Russ Torres identified developing the premium segment in international geographies, strong focus on productivity leveraging global scale, and business scaling as key drivers. He highlighted significant share gains in IPC markets in 2025, including China diapers up 270bps and strong growth in Indonesia, Korea, Australia, and Brazil. For 2026, he expects positive volume and mixed-led growth ahead of the category, targeting weighted share growth and operating profit gains.

Edward Lewis inquired about the significant gross margin gap between Kimberly-Clark's international business and North America, asking if international gross margin represents a major opportunity and what the key drivers for improvement are.

Answer

Chairman and CEO Mike Hsu confirmed international margins as an opportunity. President and COO Russ Torres identified developing the premium segment in international geographies as a key driver for margin expansion, alongside leveraging global scale for productivity. He highlighted strong share gains and organic growth in key international markets like China, Korea, Brazil, and Indonesia in 2025. Mike Hsu added that for 2026, they expect positive volume and mix-led growth ahead of the category, targeting weighted share growth, and operating profit dollar and margin gains in international markets.

Edward Lewis asked about P&G's regional business mix, particularly the advantages of its elevated U.S. presence as U.S. growth normalizes, and the continued growth in emerging markets like Latin America, questioning if P&G's advantages are regionally agnostic or globally applicable.

Answer

CEO Shailesh Jejurikar prioritized faster U.S. growth but also highlighted significant opportunities outside the U.S., with deliberate focus on high-potential markets. He cited examples like changing the business model in Argentina to better focus on Mexico and Brazil, leading to 9% and double-digit growth, respectively. He believes P&G is well-positioned for future growth in many large markets. CFO Andre Schulten added that the margin structure in Enterprise Markets allows for consistent, self-funding investment, making expansion and growth sustainable.

Edward Lewis asked about P&G's regional business mix, considering slowing U.S. growth and continued growth in emerging markets like Latin America, and whether P&G's competitive advantages are globally applicable.

Answer

CEO Shailesh Jejurikar stated that the primary task is to accelerate U.S. growth, but also highlighted tremendous opportunities outside the U.S., with deliberate focus on high-potential markets. He cited Latin America's strong growth (9% in Brazil, double-digit in Mexico) as an example of successful business model changes and increased consumer focus. CFO Andre Schulten added that the margin structure in enterprise markets allows for consistent, self-funding investment, supporting expansion and growth.

Edward Lewis of Redburn Atlantic inquired about the consumer value aspect of P&G's superiority strategy, noting that the company is achieving positive volume growth despite significant cumulative pricing, and asked if this provides confidence for future price increases.

Answer

Jon Moeller, Chairman, President and CEO, confirmed that P&G will continue to take more pricing as it introduces innovation that delivers superior product efficacy and experience. He stated that the data referenced by the analyst does indicate P&G has the ability to continue contributing to the top line through modest, innovation-led pricing.

Edward Lewis asked for context on Indonesia's 12.7% growth relative to expectations and an assessment of China's earlier-than-expected return to growth in Q3, inquiring about the impact of changes made there.

Answer

CEO Fernando Fernandez expressed satisfaction with Indonesia's renewed leadership and progress in resetting fundamentals, including low stock levels, resolved channel price conflict, relaunching top brands, and enhanced social-first marketing, leading to consistent run rate improvements. For China, he reiterated that all four business groups are back to growth, attributing it to significant interventions in e-commerce route-to-market and direct-to-consumer manufacturing/logistics, with continued improvement expected.

Edward Lewis highlighted Europe's strong performance, with positive volume and price, and asked how much incremental marketing support went to the region and how that supports confidence in sustaining the growth.

Answer

CEO Noel Wallace praised Europe's 'terrific performance,' confirming balanced volume and price growth across all hubs. He attributed the success to strong RGM analytics, a robust innovation pipeline, and increased advertising. He noted that advertising-to-sales in the region was up approximately 220 basis points, which helped drive brand health and achieve record market shares, giving him confidence in the ability to sustain momentum.

Edward Lewis asked about the evolution of channel mix, inquiring how much the mix has changed in regions like Latin America and Asia (ex-China) since the new strategy launch, and how this expansion into adjacent channels is aiding the premiumization strategy.

Answer

Noel Wallace, Chairman, President and CEO, explained that channel expansion has gone beyond e-commerce to include innovative discount formats and club stores, particularly in Asia. He stated the company has been quick to adapt to new formats and works closely with all retailers to provide the right products and price pack architectures to drive category growth, which is key to the overall strategy.