Victor

Victor, on behalf of Rob Moskow, asked how the reduced tariff impact affects Procter & Gamble's pricing strategy, given previous plans for mid-single-digit pricing on U.S. SKUs, and how the company is performing amidst consumer weakness and a challenging macro backdrop.

Answer

CFO Andre Schulten stated that the U.S. pricing announced in July and effective in September was primarily innovation-driven, an aggregate 2-2.5% increase across the portfolio, with tariffs being a contributor but not the main driver. He confirmed no change to the pricing approach. Regarding consumer weakness and share, he reiterated sequential progress in absolute U.S. share and the expectation to exit the U.S. with neutral to share growth by focusing on integrated superiority and better value propositions.

Victor (on behalf of Robert Moskow) questioned the feasibility of the 1%-2% pricing algorithm given macro pressures and the Hispanic consumer, asking if price increases are concentrated in low Hispanic markets. He also sought more color on the negative mix impact mentioned in prepared remarks, specifically if it stemmed from strong demand for Corona Familiar or larger Modelo sizes.

Answer

CEO Bill Newlands affirmed the expectation of 1%-2% overall pricing delivery, achieved by a SKU-by-SKU, market-by-market approach. He highlighted Modelo Especial's continued strength as the number one selling beer by dollars, which provides strong brand equity to support market-specific pricing. He did not directly address the negative mix impact source but reiterated the pricing strategy.