| Segment | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 |
|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Beauty** ($ million) | **N/A** | **N/A** | **3,550**  **[0000080424-24-000051_pg-20240331.htm:32]**  | **3,849**  **[0000080424-24-000018_pg-20231231.htm:32]**  | **4,097**  **[0000080424-23-000103_pg-20230930.htm:28]**  | **N/A** | **3,494**  **[0000080424-23-000046_pg-20230331.htm:32]**  | **3,807**  **[0000080424-23-000014_pg-20221231.htm:23]** **[0000080424-23-000014_pg-20221231.htm:32]**  |
| **Grooming** ($ million) | **N/A** | **N/A** | **1,539**  **[0000080424-24-000051_pg-20240331.htm:32]**  | **1,734**  **[0000080424-24-000018_pg-20231231.htm:32]**  | **1,724**  **[0000080424-23-000103_pg-20230930.htm:28]**  | **N/A** | **1,495**  **[0000080424-23-000046_pg-20230331.htm:32]**  | **1,643**  **[0000080424-23-000014_pg-20221231.htm:23]** **[0000080424-23-000014_pg-20221231.htm:32]**  |
| **Health Care** ($ million) | **N/A** | **N/A** | **2,873**  **[0000080424-24-000051_pg-20240331.htm:32]**  | **3,172**  **[0000080424-24-000018_pg-20231231.htm:32]**  | **3,074**  **[0000080424-23-000103_pg-20230930.htm:28]**  | **N/A** | **2,828**  **[0000080424-23-000046_pg-20230331.htm:32]**  | **3,051**  **[0000080424-23-000014_pg-20221231.htm:23]** **[0000080424-23-000014_pg-20221231.htm:32]**  |
| **Fabric & Home Care** ($ million) | **N/A** | **N/A** | **7,169**  **[0000080424-24-000051_pg-20240331.htm:32]**  | **7,415**  **[0000080424-24-000018_pg-20231231.htm:32]**  | **7,646**  **[0000080424-23-000103_pg-20230930.htm:28]**  | **N/A** | **7,016**  **[0000080424-23-000046_pg-20230331.htm:32]**  | **7,032**  **[0000080424-23-000014_pg-20221231.htm:23]** **[0000080424-23-000014_pg-20221231.htm:32]**  |
| **Baby, Feminine & Family Care** ($ million) | **N/A** | **N/A** | **4,936**  **[0000080424-24-000051_pg-20240331.htm:32]**  | **5,146**  **[0000080424-24-000018_pg-20231231.htm:32]**  | **5,186**  **[0000080424-23-000103_pg-20230930.htm:28]**  | **N/A** | **5,062**  **[0000080424-23-000046_pg-20230331.htm:32]**  | **5,065**  **[0000080424-23-000014_pg-20221231.htm:23]** **[0000080424-23-000014_pg-20221231.htm:32]**  |
| **Corporate** ($ million) | **N/A** | **N/A** | **128**  **[0000080424-24-000051_pg-20240331.htm:32]**  | **N/A** | **N/A** | **N/A** | **173**  **[0000080424-23-000046_pg-20230331.htm:32]**  | **N/A** |

3e91622d248b6930a9f8cf37b3a23c0c5dfd997997c4f5fb4d7540c504bbb616

Feminine Care (Global)

Family Care (North America)

d58c774469aa4d470bccc3692f32a577bb0a3242c1fc4db9c01363b92b9a35de

Procter & Gamble (P&G) is a global leader in the consumer goods industry, specializing in branded consumer packaged goods of superior quality and value. Operating in approximately 180 countries and territories, P&G organizes its business into five main segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care **[0000080424-24-000083_pg-20240630.htm:5]** **[0000080424-24-000083_pg-20240630.htm:72]**. The company focuses on delivering superior products across these categories, leveraging innovation, and maintaining strong relationships with retail partners to drive growth and value creation **[0000080424-24-000083_pg-20240630.htm:5]** **[0000080424-24-000083_pg-20240630.htm:39]** **[0000080424-24-000083_pg-20240630.htm:40]**.

1. **Fabric & Home Care** - Offers fabric care products like Tide and Ariel, and home care products such as Febreze and Swiffer, contributing significantly to the company's net sales and earnings **[0000080424-24-000083_pg-20240630.htm:39]** **[0000080424-24-000051_pg-20240331.htm:23]**.
2. **Baby, Feminine & Family Care** - Provides products under brands like Pampers, Always, and Charmin, playing a crucial role in the company's overall sales and earnings **[0000080424-24-000083_pg-20240630.htm:39]** **[0000080424-24-000051_pg-20240331.htm:23]**.
3. **Beauty** - Includes hair care and skin and personal care products with major brands like Head & Shoulders, Pantene, Olay, and SK-II **[0000080424-24-000083_pg-20240630.htm:39]** **[0000080424-24-000051_pg-20240331.htm:23]**.
4. **Health Care** - Comprises oral care and personal health care products, featuring notable brands such as Crest, Oral-B, and Vicks **[0000080424-24-000083_pg-20240630.htm:39]** **[0000080424-24-000051_pg-20240331.htm:23]**.
5. **Grooming** - Encompasses grooming appliances and blades and razors, with key brands including Gillette, Venus, and Braun **[0000080424-24-000083_pg-20240630.htm:39]** **[0000080424-24-000051_pg-20240331.htm:23]**.

778835898d533a64ad7ae8cb8f451d3c5a5d3f8b483d310f72cf18a788b49f96

c0592f1a514159fc9847774f41d71c7febe6d5eea3c0b84bedb251b17967967c

1. With the **Baby Care** segment experiencing sustained pressure over multiple quarters, partly due to declining birth rates in key markets like **China** and the **U.S.**, how do you plan to drive growth in this segment, and can you elaborate on the specific innovations and strategies that will counteract these demographic challenges?  **[PG_3403071_7]** 

2. Given the significant decline in organic sales in **Greater China** by **15%**, particularly impacting the **SK-II** brand in the **Beauty** segment, what concrete steps are you taking to stabilize and revive performance in this critical market, and how confident are you in the timelines for returning to growth?  **[PG_3403071_19]** **[PG_3403071_0]** 

3. As pricing becomes less of a tailwind and you anticipate lower market growth rates in the **U.S.** from **5%-6%** down to **3%-4%**, how will you sustain market share gains and drive category growth in a moderating pricing environment, especially when faced with increasing competition and changing consumer behaviors?  **[PG_3403071_5]** 

4. The **Family Care** business has benefited from innovation in substrate and roll sizes, but with **11 consecutive quarters** of growth, how sustainable are these growth rates going forward, especially as pricing benefits wane, and what are you doing to ensure continued category growth and market share gains?  **[PG_3403071_7]** 

5. Despite stating that the promotional environment and private label competition remain stable, are you concerned about potential shifts in consumer behavior towards trading down or increased promotional pressures in the face of economic uncertainty, and how are you preparing to address these risks to protect your margins and market share?  **[PG_3403071_13]** 

c609476b07987f95bc17e0f2b5321e208ebf09b52e4552dda51cb53465966925

Beauty

Grooming

Health Care

Fabric & Home Care

Baby, Feminine & Family Care

Corporate

Total Revenue

83144944b1afbc0b8a7ae82b19fa1755603a7dcb5e8b60ce9ab6c9b6be4aa97b

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

824fbcefd9699bd1a128f7aa0caf1d3b62010649e293efe8441e436fdaa44631

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

82b57f6cd960501be1eb40bb182f0c7d33d11c388757650cc382a9b53687f936

- **Strong relationships with retail partners focused on market growth**, with positive conversations and collaborative efforts to work more efficiently, indicating healthy demand and support for P&G's products across key markets.  **[PG_3412999_22]**
- **Stability and growth in core markets**, with the **consumer in their categories described as stable**, market growth in Europe at around **4%**, and consistent market share gains, including **private label shares declining** in both the US and Europe. This suggests P&G's strong positioning and potential for continued growth.  **[PG_3412999_6]**
- **Encouraging recovery and growth prospects in China**, with organic sales decline improving from **down 15% in Q1** to **down 3% in Q2**, and brands like **SK-II returning to growth at 5%**. P&G is leveraging marketplace changes to strengthen its position and drive market growth, indicating potential upside in a key market.  **[PG_3412999_5]** **[PG_3412999_8]**

688d7cbb74aa465ac43bfeecd61efb06cc4ba5bcd46f7a35c8d43d07667b1505

- **Increased foreign exchange headwinds are pressuring EPS**, with P&G now expecting a **$300 million after-tax headwind**, equating to **$0.12 per share for fiscal '25**. Management acknowledges confidence toward the **lower end of the guidance range** for both organic sales growth and core EPS due to these headwinds.  **[PG_3412999_3]** **[PG_3412999_10]**
- **Continued challenges in key markets like China and the Middle East** pose risks to growth. Management admits that **"China is not out of the woods"** and will remain difficult and volatile, which could drive results to the **midpoint or lower end of the guidance**. The Middle East is also expected to remain a **more difficult environment** throughout the second half.  **[PG_3412999_13]** **[PG_3412999_8]**
- P&G may have **limited flexibility to offset headwinds** due to its commitment to investing in innovation, even if it means accepting **lower EPS**. Management states they will **"fully support"** the innovation pipeline and may accept coming in **"a little bit lower"** on earnings if necessary.  **[PG_3412999_12]**

b386af6e9fcd02663bd551a8638e51aaaffd5961fe1ae392f5c72cce818766c8

1. **China Sales Outlook**  
   **Q:** How is China's performance and outlook?  
   **A:** China's market remains challenging, but there are signs of improvement. In Q2, China's organic sales were down only **3%**, improving from a **15%** decline in Q1. The **SK-II** brand is returning to growth at **5%**.  **[PG_3412999_8]**  We are innovating across core brands like Hair Care, Fabric Care, and Olay, and making progress in go-to-market strategies. However, we acknowledge that China is "not out of the woods," and volatility could impact our guidance  **[PG_3412999_8]** ,.  **[PG_3412999_11]** 

2. **Organic Sales Growth Guidance**  
   **Q:** Are you confident about hitting your organic sales growth targets?  
   **A:** We have good visibility and confidence towards the lower end of our guidance range for organic sales growth and core EPS. Continued strong performance of around **4%** growth in the **85%** of our business (U.S., Europe, Latin America) and recovery in the **15%** (Asia, Middle East, Africa) could move us to the midpoint or higher. However, weakening in core markets or a return to negative territory in China could move us to the lower end  **[PG_3412999_5]** ,.  **[PG_3412999_10]** 

3. **Input Costs and FX Impacts**  
   **Q:** How are input costs and FX affecting margins?  
   **A:** We maintained our outlook for a **$200 million** after-tax headwind from input costs. Any variations in input costs now will likely impact the first half of next fiscal year due to contract structures. Most FX impact will hit in the second half, largely due to currency volatility. We are confident in our productivity programs, aiming for **$1.5 billion** in cost of goods sold savings and **$2 billion** overall, including SG&A  **[PG_3412999_9]** ,.  **[PG_3412999_7]** 

4. **Innovation Pipeline Strength**  
   **Q:** How strong is your upcoming innovation program?  
   **A:** We have a robust innovation pipeline and are confident in our upcoming programs. For example, the **Tide evo** test market in Colorado exceeded first-year expectations in just **12 weeks**. We are investing in innovation across categories, including Oral Care with the rollout of **iO 10** and **iO 2** toothbrushes. Innovation enables modest pricing moves and drives market growth  **[PG_3412999_11]** ,.  **[PG_3412999_14]** 

5. **Capital Allocation and Share Repurchase**  
   **Q:** What are your plans for M&A and share buybacks?  
   **A:** We continue to prioritize returning value to shareholders, expecting to return **$16 to $17 billion** this year via dividends and share repurchases. M&A is not a primary focus due to our strong market positions, but we remain open to opportunities in categories like Personal Health Care and Skin Care if they create value. We will continue aggressive share repurchases as part of our ongoing capital allocation strategy.  **[PG_3412999_16]** 

6. **Consumer Trends in U.S. and Europe**  
   **Q:** How are U.S. and European consumers behaving?  
   **A:** Consumers in our categories remain **stable**. In Europe, markets continue to grow around **4%**, with inflation down to about **2%**. In the U.S., consumption was volatile due to external factors but overall remains stable, with market growth around **4%** and volume growth around **3%**. Private label shares are flat to declining in both regions, indicating consumer resilience.  **[PG_3412999_6]** 

7. **Performance of Key Categories**  
   **Q:** How are key categories like Beauty and Health Care performing?  
   **A:** In Beauty, we see strength in Antiperspirants up **11%**, Personal Care up **16%**, and Hair Care up **3%**. However, Skin Care is an area of opportunity, with declines due to shifts in consumer preferences and distribution changes. In Health Care, growth is impacted by a mild cough/cold season, but we are building share and remain positive about our broader portfolio's growth prospects  **[PG_3412999_20]** ,.  **[PG_3412999_18]** 

8. **Pricing Strategy and Mix**  
   **Q:** Will pricing remain flat or turn negative?  
   **A:** Pricing is an outcome driven by innovation and market conditions. We have consistently contributed to top-line growth through modest pricing for **54 of the last 57 quarters**. We will continue to take pricing with innovation, and we do not foresee pricing turning negative. Mix is positively impacted by consumers trading up within categories, which boosts sales but may affect gross margins mathematically  **[PG_3412999_21]** ,.  **[PG_3412999_7]** 

9. **Latin America and Enterprise Markets Outlook**  
   **Q:** What is the outlook for Latin America and Enterprise Markets?  
   **A:** Latin America delivered **3%** growth this quarter on a base of **17%**. Markets like Mexico are challenging, but we expect acceleration in the second half due to strong plans and easier comparisons. Europe Enterprise Markets grew **1%** on a base of **8%**, with volume share increasing by **60 basis points**. In Asia, Middle East, and Africa, stabilization, particularly in the Middle East, is key for future growth.  **[PG_3412999_13]** 

10. **Retailer Relationships**  
    **Q:** How are relationships with retail partners evolving?  
    **A:** Conversations with retail partners are positive and focused on market growth and efficient collaboration. In Europe, we are working closely with customers to drive market growth. In the U.S., while some retailers face challenges, we continue to focus on opportunities for joint growth. Our discussions emphasize optimizing supply chains and being strong partners in driving category growth.  **[PG_3412999_22]** 

683236fb3deaad539fe9410f736d721e1c695d4dd476b6da82a3dcbfb777b05d

8031b5bf118c64102fd47104d173e82e45ffbafe77339f216df5962a75508b28

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Organic Sales Growth**: 3% to 5%
  2. **Core EPS Growth**: 5% to 7% (equates to $6.91 to $7.05 per share)
  3. **Commodity Costs**: $200 million headwind after tax ($0.08 per share)
  4. **Foreign Exchange**: Impact expected to be in line with the prior year
  5. **Nonoperating Income and Tax Rate**: $0.10 to $0.12 headwind to core EPS
  6. **Free Cash Flow Productivity**: 90%
  7. **Dividends and Share Repurchases**: $10 billion in dividends, $6 billion to $7 billion in stock repurchases  **[PG_3403071_1]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Organic Sales Growth**: 3% to 5%
  2. **Core EPS Growth**: 5% to 7% (translates to $6.91 to $7.05 per share)
  3. **Commodity and Foreign Exchange Headwinds**: $300 million commodity cost headwind, $200 million foreign exchange headwind (combined $0.20 per share headwind)
  4. **Tax Rate and Divestitures**: $0.10 to $0.12 headwind to core EPS
  5. **Adjusted Free Cash Flow Productivity**: 90%
  6. **Cash Return to Shareowners**: $10 billion in dividends, $6 billion to $7 billion in stock repurchases, $16 billion to $17 billion total cash return  **[PG_3394998_6]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Sales Growth**: 4% to 5%
  2. **Core EPS Growth**: 10% to 11%
  3. **Commodities**: $900 million tailwind after tax
  4. **Foreign Exchange**: $600 million headwind after tax
  5. **Net Interest Expense**: $100 million higher after tax
  6. **Adjusted Free Cash Flow Productivity**: 90%
  7. **Cash Return to Shareowners**: $14 billion to $15 billion total cash return, including more than $9 billion in dividends and $5 billion to $6 billion in stock repurchases  **[PG_3380114_2]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Sales Growth**: 4% to 5%
  2. **Core EPS Growth**: 8% to 9%
  3. **Commodities Impact**: $800 million tailwind after tax
  4. **Foreign Exchange Impact**: $1 billion headwind after tax
  5. **Net Interest Expense**: $100 million higher after tax
  6. **Adjusted Free Cash Flow Productivity**: 90%
  7. **Cash Return to Shareholders**: $14 billion to $15 billion total cash return, including more than $9 billion in dividends and up to $6 billion in stock repurchases
  8. **Wage and Benefit Costs**: Noted as earnings headwinds  **[PG_3370585_5]** .

219f72c4c5afafb7f324aec2dc5df19ca75740a433a4912102b73cacf15c4594

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | N/A             |
| End Date/Duration        | N/A             |
| Total additional amount  | **$6 to $7 billion**  **[0000080424-24-000113_pg-20240930.htm:42]**  |
| Remaining authorization  | N/A             |
| Details                  | The program aims to reduce outstanding shares through direct share repurchases. It is expected to be financed by a combination of operating cash flows and the issuance of debt. The program can be increased, decreased, or discontinued at any time without prior notice.  **[0000080424-24-000113_pg-20240930.htm:42]** **[0000080424-24-000083_fy232410-kexhibit19x2.htm:0]** **[0000080424-24-000083_pg-20240630.htm:30]**  |

9e65c01a660d8596e46d11d8e71b7d34f4ef51cf623006f65e65e672595baf83

| Name                     | Position                                                                 | Start Date | Short Bio                                                                                                                                                                                                 |
|--------------------------|--------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jon R. Moeller           | Chairman of the Board, President, and Chief Executive Officer            | Nov 2021   | Jon R. Moeller is the **Chairman of the Board, President, and Chief Executive Officer** of P&G. He assumed the role of President and CEO in **November 2021** and was named Chairman of the Board effective **July 2022**  **[0001193125-24-205691_d657922ddef14a.htm:19]** **[0000080424-24-000083_pg-20240630.htm:118]** **[0000080424-24-000083_pg-20240630.htm:29]** .            |
| Shailesh Jejurikar       | Chief Operating Officer                                                  | 2018       | Shailesh Jejurikar is the **Chief Operating Officer** at P&G. He was first elected to an officer position in **2018**. He previously served as CEO of Fabric and Home Care from 2019 to 2021  **[0000080424-24-000083_pg-20240630.htm:29]** **[0000080424-23-000073_pg-20230630.htm:28]** .                                           |
| Andre Schulten           | Chief Financial Officer                                                  | 2021       | Andre Schulten is the **Chief Financial Officer** of P&G. He was first elected to this officer position in **2021**. Prior to becoming CFO, he served as **Senior Vice President - Baby Care, North America** from **2018 to 2021**  **[0000080424-24-000083_pg-20240630.htm:29]** **[0000080424-23-000073_pg-20230630.htm:28]** .     |
| Gary A. Coombe           | Chief Executive Officer - Grooming                                       | 2014       | Gary A. Coombe serves as the **Chief Executive Officer - Grooming** at P&G. He has held this position since **2014**. Prior to this role, he served as President - Europe Selling & Market Operations from 2014 to 2018  **[0000080424-24-000083_pg-20240630.htm:29]** **[0000080424-23-000073_pg-20230630.htm:28]** .                  |
| Jennifer L. Davis        | Chief Executive Officer - Health Care                                    | 2022       | Jennifer L. Davis is the Chief Executive Officer of Health Care at P&G. She was first elected to this officer position in **2022**. Prior to her current role, she served as President of Feminine Care from **2019 to 2022**  **[0000080424-24-000083_pg-20240630.htm:29]** **[0000080424-23-000073_pg-20230630.htm:28]** .            |
| Ma. Fatima D. Francisco  | Chief Executive Officer - Baby, Feminine and Family Care                 | 2018       | Ma. Fatima D. Francisco is the Chief Executive Officer of Baby, Feminine, and Family Care at P&G. She has been serving in this role since **2018**. She previously served as CEO of Baby and Feminine Care from 2019 to 2021  **[0000080424-24-000083_pg-20240630.htm:29]** **[0000080424-23-000073_pg-20230630.htm:28]** .              |
| R. Alexandra Keith       | Chief Executive Officer - Beauty and Executive Sponsor for Sustainability | 2017       | R. Alexandra Keith is the **Chief Executive Officer - Beauty and Executive Sponsor for Corporate Sustainability** at P&G. She was first elected to an officer position in **2017**  **[0000080424-24-000083_pg-20240630.htm:29]** .                                                         |
| Sundar Raman             | Chief Executive Officer - Fabric and Home Care                           | 2021       | Sundar Raman is the **Chief Executive Officer - Fabric and Home Care** at P&G. He was first elected to this officer position in **2021**. He previously served as President - Home Care and P&G Professional from 2020 to 2021  **[0000080424-24-000083_pg-20240630.htm:29]** .              |
| Victor Aguilar           | Chief Research, Development and Innovation Officer                       | 2020       | Victor Aguilar is the **Chief Research, Development and Innovation Officer** at P&G. He was first elected to this officer position in **2020**. He previously held various senior positions in R&D for Global Fabric Care from 2014 to 2019  **[0000080424-24-000083_pg-20240630.htm:29]** **[0000080424-23-000073_pg-20230630.htm:28]** . |
| Marc S. Pritchard        | Chief Brand Officer                                                      | 2008       | Marc S. Pritchard is the **Chief Brand Officer** at P&G. He has been serving in this role since **2008**  **[0000080424-24-000083_pg-20240630.htm:29]** .                                                                                                                                  |
| Balaji Purushothaman     | Chief Human Resources Officer                                            | 2023       | Balaji Purushothaman is the **Chief Human Resources Officer** at P&G. He was first elected to this officer position in **2023**. He previously served as Senior Vice President - Human Resources, Global Total Rewards from 2020 to 2022  **[0000080424-24-000083_pg-20240630.htm:29]** **[0000080424-23-000073_pg-20230630.htm:28]** . |
| Susan Street Whaley      | Chief Legal Officer and Secretary                                        | 2022       | Susan Street Whaley is the **Chief Legal Officer and Secretary** at P&G. She was first elected to this officer position in **2022**. She previously served as Senior Vice President and General Counsel - North America from 2019 to 2022  **[0000080424-24-000083_pg-20240630.htm:29]** .   |

de87afe270463c4f8a3466360c6c897d6974970cc8b2620b52091e2989d65ef5

United States

International

- North America

- Europe

- Asia Pacific

- Greater China

- Latin America

- IMEA

11448016abddcb0914074dfd1337f7512a148e3aef8be6d8d8c6ea568091e01c

**Annual guidance for FY 2025:**
- **Organic Sales Growth**: 3% to 5%  **[PG_3412999_3]** (no change from prior guidance  **[PG_3412999_1]** )  
- **Core EPS Growth**: 5% to 7%, equating to $6.91 to $7.05 per share  **[PG_3412999_3]** (no change from prior guidance  **[PG_3412999_1]** )  
- **Commodity Cost Headwind**: $200 million after tax ($0.08 per share)  **[PG_3412999_3]** (no change from prior guidance  **[PG_3412999_1]** )  
- **Foreign Exchange (FX) Headwind**: $300 million after tax ($0.12 per share)  **[PG_3412999_3]** (no prior guidance)  
- **Additional Headwinds**: $0.10 to $0.12 per share from lower non-operating income benefits and a higher tax rate  **[PG_3412999_3]** (no change from prior guidance  **[PG_3412999_1]** )  
- **Adjusted Free Cash Flow Productivity**: 90%  **[PG_3412999_3]** (no change from prior guidance  **[PG_3412999_1]** )  
- **Cash Returns to Shareholders**: $16 billion to $17 billion  **[PG_3412999_3]** (no prior guidance)  
- **Dividends**: $10 billion  **[PG_3412999_3]** (no change from prior guidance  **[PG_3412999_1]** )  
- **Share Repurchases**: $6 billion to $7 billion  **[PG_3412999_3]** (no change from prior guidance  **[PG_3412999_1]** )  
- **Market Growth Expectations**: Local currency sales growth of 3% to 4%  **[PG_3412999_3]** (no prior guidance)  
- **Geopolitical and Economic Assumptions**: No significant additional currency weakness, commodity cost increases, geopolitical disruptions, or major supply chain disruptions  **[PG_3412999_3]** (no prior guidance)  
- **Second Half Outlook**: Stronger results expected in the second half of FY 2025 despite challenges  **[PG_3412999_3]** (no prior guidance)  

 **[PG_3412999_3]** : Q2 2025 guidance  
 **[PG_3412999_1]** : Q1 2025 guidance  

ac09a0538888addd90f0ecc5ba8def7f5587e2e31791f86eb07a893f7b6db4fb

PG Q2'25: Europe grows ~4%, private labels lose share, and China’s organic sales improve from -15% to -3% (SK-II +5%). However, a $300M FX headwind (~$0.12 EPS) weighs on guidance. Management remains committed to innovation, accepting near-term EPS pressure.

2c9e82726fa1c60cedb2faccfc314ec86c98f8c41f6c9635a6fc258af43d589f

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1890  **[0000080424-24-000083_pg-20240630.htm:65]**  | Present  | Current auditor   |

d5fb0d194c3d7009097edbe2711281f86ed51249b3873d887ba46b7abed73a95

3478f43a07371fce3ba351f7050c3cb8fa32f17f6a06cb936801aa87c08babe7

- Total Revenue: $21,882 million (+2% YoY)  **[0000080424-24-000018_pg-20231231.htm:9]** **[0000080424-25-000013_pg-20241231.htm:32]**   
- Operating Income (EBIT): $5,741 million (+29% YoY)  **[0000080424-24-000018_pg-20231231.htm:2]** **[0000080424-24-000018_pg-20231231.htm:9]** **[0000080424-25-000013_pg-20241231.htm:2]**   
- Net Income: $4,659 million (**+33% YoY**)  **[0000080424-24-000018_pg-20231231.htm:2]** **[0000080424-24-000018_pg-20231231.htm:9]** **[0000080424-25-000013_pg-20241231.htm:2]**   
- Basic EPS: $1.94 (**+35% YoY**)  **[0000080424-24-000018_pg-20231231.htm:2]** **[0000080424-24-000018_pg-20231231.htm:9]** **[0000080424-25-000013_pg-20241231.htm:13]**   
- All major business segments (Beauty, Grooming, Health, Fabric/Home, Baby/Feminine) remained within ±3% YoY  **[0000080424-24-000018_pg-20231231.htm:9]** **[0000080424-25-000013_pg-20241231.htm:32]**   

d5d98fabc81bef2784d0e697d281ac4421fadd49f92c1b16a875073d0b4d225c

e4f06c9c3e0d6865860b6bae476b438b7ca6a41b18a95e0558f5f4e2c5cae9cd

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17f440686383e1116967ba15a0160cad4990d0f26e157ed3dcbc184a76b2f912

ed74c53f1e076a5aa4782549596ba248a72971eb7b5625e432980b68627dcaf9

- **P&G is facing challenges in adapting to significant channel shifts in China**, especially in the Beauty segment, due to the rise of online platforms like TikTok/Douyin, which require a balance between transactional sales and brand equity building.  **[PG_3380114_13]**
- **Rising SG&A expenses, with a 14% increase in marketing spend year-over-year**, may impact profitability as the company continues to invest heavily in marketing to drive growth.  **[PG_3380114_8]**
- **Delays in innovation in the U.S. mid-tier Baby Care segment, particularly with the Luvs brand**, have led to competitiveness issues and a misalignment with consumer needs, affecting sales in that category.  **[PG_3380114_5]**

b7a5aeebb719bab5d71e65dc40a2817436bd741d8771fceccaac5fa9b5080563

- Procter & Gamble faces **persistent challenges in key markets like China and the Middle East**, causing volatility and deceleration in growth. The situation in these regions could continue to impact the company's performance, potentially pointing to **the lower end of their guidance**.  **[PG_3403071_3]** ,  **[PG_3403071_5]**
- There is a **divergence in performance across categories**, with underperformance in segments like **Beauty (due to SK-II in China)** and **Baby Care**, which has been subject to **decreasing growth rates amid declining birth rates**. This underperformance could pose challenges to overall growth.  **[PG_3403071_3]** ,  **[PG_3403071_19]** ,  **[PG_3403071_16]** ,  **[PG_3403071_7]**
- Procter & Gamble's **market share performance has declined**, with the company now gaining or holding share in **only 28 of its top 50 category-country combinations**, down from **75% in fiscal '22**. This indicates increased competitive pressures and potential challenges in sustaining market share growth.  **[PG_3403071_10]**

97cef81eeb5815a98d34611f7d7a2e26aa20d1c5c45311351efbd48d1b86da37

- **Ongoing headwinds in key markets like China and the Middle East are expected to persist into the first half of fiscal '25**, impacting sales growth. The company acknowledges that **market sentiment in China has not improved**, with issues in the **SK-II brand** and **no expectation of returning to pre-COVID double-digit growth rates**.  **[PG_3394998_8]** **[PG_3394998_17]**
- **Growth in core markets like North America and Western Europe is expected to slow from 5%-8% to 3%-4%**, due to decreasing price/mix contributions and potential market saturation. This slowdown may limit the company's ability to drive organic sales growth in these key regions.  **[PG_3394998_15]**
- **Significant increases in marketing and advertising spend may not yield immediate returns**, raising concerns about the effectiveness of higher spending in a volatile market environment. This heightened investment could pressure margins if expected sales growth does not materialize.  **[PG_3394998_9]** **[PG_3394998_18]**

8fb03de90d80fd1f11a723005043b61b7cbd8281b774fe5ab271526768d534d0

- **Significant weakness in China**, with the SK-II brand down **34%** due to soft market conditions and anti-Japanese sentiment, with no expected near-term recovery to mid-single-digit growth in China.  **[PG_3370585_10]** **[PG_3370585_14]**
- **Foreign exchange headwinds** expected to impact earnings in the second half, with **75% of the $1 billion** after-tax FX impact hitting in the second half, primarily driven by Argentina.  **[PG_3370585_7]**
- **Commodity cost tailwinds** that benefited the first half are expected to **diminish in the second half**, leading to potential pressure on EPS growth.  **[PG_3370585_7]** **[PG_3370585_15]**

91b978a11dbb279c050431095994a083a3e80c38e6472c82a0ce9cb2496cf8a4

- **Strong performance and market share gains in key markets like the U.S. and Europe**, driven by **consistent innovation, superior products, and increased marketing investments**. P&G's European business has achieved **12 consecutive quarters of 5% or higher growth**.  **[PG_3380114_13]**
- **Robust productivity improvements are enabling margin expansion and continued investment in the business**. P&G has a **3-year productivity master plan**, providing great visibility and supporting future growth initiatives.  **[PG_3380114_4]**
- **Effective adaptation to market dynamics in China**, with sequential progress excluding SK-II, and strong growth in categories like **Baby Care (up 11%) and Appliances (up 14%)**, positioning the company for a return to growth in China.  **[PG_3380114_3]**

6e58b4f7856c2fb10c9e34ea905ea966d41c388ff2f229882f69d1b5b58c454d

- **Procter & Gamble's core business, representing 85% of sales, is growing at 4%, with North America sales consistently up over the past five quarters (7%, 5%, 3%, 4%, 4%).** The company is holding or growing volume share in these regions, demonstrating strong performance in its primary markets.  **[PG_3403071_3]** **[PG_3403071_0]**
- **Robust innovation** is driving growth, with successful product launches like **Olay's super serums**, described as the **most successful entry in the segment in recent years**, and **Pantene** becoming the **#1 hair care brand online** in China ahead of Kerastase for the first time. This strong innovation pipeline positions P&G for sustained growth.  **[PG_3403071_19]** **[PG_3403071_16]**
- **Commitment to shareholder value** is evident as P&G maintains its **guidance for fiscal 2025**, expecting **organic sales growth of 3% to 5%** and **core EPS growth of 5% to 7%**. The company plans to pay around **$10 billion** in dividends and repurchase **$6 billion to $7 billion** in common stock, returning over **$16 billion** of cash to shareholders this fiscal year.  **[PG_3403071_1]**

8c821b23a7591ba3eb6f0211a01e720702f55c2e41581df345d05b8ef761d478

- **P&G is experiencing strong reacceleration of volume growth in key markets like North America and Europe, while simultaneously expanding margins**.  **[PG_3394998_8]**  This demonstrates the effectiveness of their strategy in driving growth despite a challenging environment.
- **The company expects balanced organic sales growth of 3% to 5% for fiscal 2025, with contributions from both volume and price/mix**.  **[PG_3394998_9]**  Strong productivity improvements enable continued investments in innovation and marketing, supporting future growth.
- **Headwinds in China and the Middle East are expected to annualize, potentially leading to improved performance in the second half of fiscal 2025**.  **[PG_3394998_12]**  Additionally, significant segments like Beauty (excluding SK-II) are showing strong growth, with brands like **Head & Shoulders** and **Pantene** growing **7%** and **10%** respectively.  **[PG_3394998_16]**

bb7d1a9d8dc8f27528d0cc7552fd7352a53653a672ce169d3d41de33ceb250dc

1. **China Sales and Outlook**  
   **Q:** How is P&G's performance in China, and what is the outlook?  
   **A:** China's performance was impacted this quarter due to consumer sentiment issues, particularly affecting the **SK-II brand**, which saw a **34% decline**, including travel retail ** **[PG_3370585_7]** ,  **[PG_3370585_10]** **. The decline was partly due to anti-Japanese sentiment related to the Fukushima wastewater release **[PG_3370585_10]**. However, consumer sentiment is normalizing, and P&G remains confident in China's long-term growth potential, expecting market growth to return to mid-single digits over time ** **[PG_3370585_10]** ,  **[PG_3370585_12]** **.

2. **Second Half Growth and EPS Guidance**  
   **Q:** What are P&G's expectations for sales and EPS growth in the second half?  
   **A:** P&G anticipates delivering around **5% organic sales growth** for the full year, leaning towards the upper end of its 4-5% guidance range, implying similar growth in the back half ** **[PG_3370585_7]** ,  **[PG_3370585_8]** **. On EPS, strong first-half performance sets the company up well, but it expects less contribution from commodity tailwinds and notes that **75% of FX headwinds** will impact the second half, especially from Argentina **[PG_3370585_7]**.

3. **Commodity Costs Outlook**  
   **Q:** How are commodity costs affecting margins, and what is the outlook?  
   **A:** P&G experienced the majority of its **$800 million** in commodity tailwinds in the first half **[PG_3370585_15]**. While the second half will still see benefits, they will be less significant. The company does not expect commodity costs to become a headwind, despite potential spot price volatility **[PG_3370585_15]**.

4. **Reinvestment of Margin Gains**  
   **Q:** How is P&G reinvesting its margin gains, and are there concerns about efficiency?  
   **A:** P&G is reinvesting increased margins into innovation and market growth initiatives, focusing on driving household penetration and category growth **[PG_3370585_9]**. The company carefully assesses the ROI of these investments to ensure efficiency and avoid complacency, maintaining a disciplined approach to spending **[PG_3370585_9]**.

5. **Drivers of U.S. Volume Growth**  
   **Q:** What is driving the improvement in U.S. volume growth?  
   **A:** The U.S. saw **4% volume growth**, driven by strong innovation, effective advertising, and consumers trading up within P&G's offerings **[PG_3370585_13]**. Key contributors include new product launches in categories like **Gillette**, **Oral-B**, and **Olay**, as well as targeted communication strategies without increasing promotional depth or frequency **[PG_3370585_13]**.

6. **Argentina and Nigeria Restructuring**  
   **Q:** Why is P&G restructuring operations in Argentina and Nigeria?  
   **A:** P&G is moving to an import model in Nigeria and divesting its Fabric and Home Care business in Argentina due to challenging operating conditions, such as currency controls and difficulties sourcing raw materials **[PG_3370585_17]**. These strategic decisions allow the company to operate viably while maintaining future options **[PG_3370585_17]**.

7. **Competitive Environment and Pricing**  
   **Q:** Are there increased competitive pressures or retailer pushback due to P&G's share gains?  
   **A:** The competitive environment remains stable, with no significant increase in promotional activity or pricing pressures **[PG_3370585_18]**. Promotion levels are still below pre-COVID levels, and P&G continues to focus on innovation and driving market growth, which is positively received by retail partners **[PG_3370585_18]**.

8. **SK-II Performance and Improvement**  
   **Q:** What is happening with the SK-II brand in China, and what is the outlook?  
   **A:** SK-II faced significant declines due to anti-Japanese sentiment, but consumer research shows an improvement in sentiment ** **[PG_3370585_7]** ,  **[PG_3370585_10]** **. P&G is investing in innovation and communication, leveraging loyal consumers to enhance the brand's position, and expects run rates to improve in the second half ** **[PG_3370585_7]** ,  **[PG_3370585_16]** **.

9. **Europe's Strong Performance and Pricing**  
   **Q:** What is behind P&G's strong performance in Europe amid pricing scrutiny?  
   **A:** Europe's strong results are driven by effective strategy execution, combining necessary pricing actions with strong innovation that resonates with consumers **[PG_3370585_20]**. The company has not seen significant competitive promotions and continues to grow volume and market share through innovation and targeted investments **[PG_3370585_20]**.

10. **Strategic Focus and Avoiding Complacency**  
    **Q:** How is P&G ensuring it stays focused and avoids complacency amid challenges?  
    **A:** P&G emphasizes its ability to overcome challenges through diligent strategy execution and organizational agility **[PG_3370585_11]**. The company remains committed to innovation and productivity efforts, maintaining a disciplined approach to investments to drive sustainable growth **[PG_3370585_11]**.

8daf73ed0bb0fe1c0ded9c14cec146a125f1097c4408c49fffd17ce850508c80

- **Strong Performance in Core Markets with Volume Growth Acceleration**: Procter & Gamble's core geographies, representing **75% of sales**, are performing very well, with continued volume acceleration in North America (**4% volume growth**, **5% sales growth**), Europe, and Latin America. ^ **[PG_3370585_7]**  In North America, they saw **4% volume growth** and a **50 basis point increase in market share**, with consumers trading up to higher-tier products. ^ **[PG_3370585_10]**  Europe is experiencing strong results due to successful execution of strategy combining necessary price increases with strong innovation, leading to sustainable growth. ^ **[PG_3370585_20]**
- **Broad-Based Top-Line Growth and Strong Brand Performance**: **8 out of 10** product categories held or grew sales in the quarter, with **21 of the top 25 brands** doing the same. Among the top 12 brands, **9 are growing at high single digits or better rates**. ^ **[PG_3370585_7]**  Excluding SK-II, P&G's beauty business is performing extraordinarily well, with **Head & Shoulders up 8% fiscal year-to-date**, **North America Pantene up 15%**, and **Skin and Personal Care up double digits**. ^ **[PG_3370585_14]**
- **Strategic Reinvestment in Innovation and Marketing to Drive Future Growth**: The company is strategically reinvesting significant gross margin gains into marketing and innovation efforts to drive future growth. ^ **[PG_3370585_9]**  They are disciplined in ensuring the effectiveness and ROI of their investments, focusing on driving market growth through innovation. ^ **[PG_3370585_9]**  Examples include leading market growth in **fabric enhancers**, where they have created **100% of the market growth in North America**, and in **Oral-B**, leading **70% of global market growth** with new product launches. ^ **[PG_3370585_9]**  This reinvestment supports their confidence in delivering organic sales growth towards the upper end of the **4% to 5% guidance range** for the fiscal year. ^ **[PG_3370585_8]**

bd5fd2cca3e0d31674a49144cccde85a75b77ec3865c5f3d2fe547f0d449b0b6

1. **Volume Growth Outlook**  
   **Q:** What's your outlook for volume growth and marketing ROI?  
   **A:** Andre Schulten expects volume growth to improve in Q4 as effects like U.S. inventory reductions and China softness ease.  **[PG_3380114_6]** **[PG_3380114_12]**  He believes continued investment in marketing is yielding positive ROI, driving market growth and share gains.  **[PG_3380114_6]** **[PG_3380114_7]** 

2. **Commodities Impact and FY25 Planning**  
   **Q:** How will commodity costs affect fiscal '25 plans?  
   **A:** Commodity benefits have mostly impacted fiscal year-to-date results.  **[PG_3380114_4]**  If current spot prices hold, there will be an impact next year, but Andre feels confident in handling it through innovation, reasonable pricing, and strong productivity.  **[PG_3380114_4]**  They have a solid three-year productivity master plan in place.  **[PG_3380114_4]** 

3. **Guidance and Q4 Expectations**  
   **Q:** Can you clarify guidance and Q4 growth expectations?  
   **A:** They reiterated their organic sales growth guidance of **4% to 5%** but did not point to the top end of the range.  **[PG_3380114_8]** **[PG_3380114_16]**  Andre expects Q4 organic sales growth to be within that range, driven by easing headwinds and continued market growth.  **[PG_3380114_8]** **[PG_3380114_16]** 

4. **Competitive Environment and Innovation**  
   **Q:** Are you preparing for increased competition and innovation?  
   **A:** Andre welcomes market-constructive strategies from competitors, as it can grow categories.  **[PG_3380114_18]**   P&G constantly focuses on superiority and innovation, resetting the bar to win consumers for the next five years.  **[PG_3380114_18]**  

5. **SK-II Performance in China**  
   **Q:** How is SK-II performing in China?  
   **A:** SK-II sales in China were down **30%**, but brand sentiment is sequentially improving.  **[PG_3380114_3]** **[PG_3380114_14]** **[PG_3380114_17]**  The team is innovating and enhancing communication, but recovery in shipments will take time due to retailer inventory levels.  **[PG_3380114_14]** **[PG_3380114_17]** 

6. **Product Mix and Trade-Up Trends**  
   **Q:** Is trade-up becoming harder; what's the mix outlook?  
   **A:** Andre doesn't see a change in consumers trading up within P&G's portfolio.  **[PG_3380114_9]** **[PG_3380114_10]**  The flattening of mix is primarily due to SK-II's **30%** decline, which significantly impacts mix.  **[PG_3380114_9]** **[PG_3380114_10]** 

7. **U.S. Market and Destocking Impact**  
   **Q:** What's the impact of U.S. destocking; outlook for Q4?  
   **A:** Destocking, mainly in Personal Health Care, reduced U.S. volumes but is considered a one-time event.  **[PG_3380114_5]** **[PG_3380114_15]**  Andre expects U.S. volume growth to resume, contributing to improved results in Q4.  **[PG_3380114_6]** **[PG_3380114_12]** **[PG_3380114_15]** 

8. **Elasticity in Baby Care**  
   **Q:** How is pricing affecting Baby Care volumes?  
   **A:** Baby Care volume decline is partly due to elasticity, especially where innovation hasn't kept pace with pricing.  **[PG_3380114_5]** **[PG_3380114_11]**  They see an opportunity in mid-tier products like **Luvs** and plan to address it with innovation.  **[PG_3380114_5]** **[PG_3380114_11]** 

9. **European Market Strength**  
   **Q:** What's driving strong performance in Europe?  
   **A:** Europe's strong results are due to consistent execution, strong innovation, and significant marketing investments.  **[PG_3380114_13]**  The team expects this performance to continue into 2025.  **[PG_3380114_13]** 

10. **Consumer Trade-Down Analysis**  
    **Q:** Are you seeing trade-down that isn't reflected in data?  
    **A:** Andre argues that stable private-label share and growing market volumes indicate no significant trade-down.  **[PG_3380114_11]**  Internally, they track detailed metrics beyond private-label share to monitor consumer behavior.  **[PG_3380114_11]** 

9a3a4d9e418a4f33b6ce08cc56e881f0e2706e49e0b1b839d4f5f6579bb22b1d

1. **China Sales Outlook**  
   **Q:** How is China impacting growth, and what's the outlook?  
   **A:** China and SK-II were heavily impacted by a weaker key consumption period during 6/18, and overall market sentiment in China has not improved in the second half. We expect the China recovery to be slow and take time, and these headwinds will still be with us in the first half of this fiscal year. However, we anticipate annualization of these headwinds and a return to growth as we progress through the year.  **[PG_3394998_8]** 

2. **Guidance on Organic Sales Growth**  
   **Q:** What's the expected balance between pricing and volume in the 3%-5% organic sales growth guidance for fiscal '25?  
   **A:** The volume versus price/mix contribution is expected to be broadly balanced. Markets are returning to sustainable growth rates of **3%-4%**, with about half driven by volume and half by price/mix. Our construct for the fiscal year will look similar, though it may differ by quarter and half.  **[PG_3394998_9]** 

3. **Margin Outlook and Investment**  
   **Q:** How will margins flex relative to top-line growth amid volatility?  
   **A:** We have delivered over **$2 billion** in productivity savings for the year and significantly increased our media support. We'll continue to invest fully in the business while being disciplined. Productivity for fiscal '25 is also very strong, allowing us to maintain full investment in market support and innovation, which underpin our growth next year.  **[PG_3394998_9]** 

4. **Performance in Key Segments**  
   **Q:** What's driving performance in Fabric & Home Care and Baby & Family, and what's the outlook?  
   **A:** Home Care is performing outstandingly well with **9%** organic sales growth for the year and 13 quarters of sustained share growth. In Fabric Care, we are annualizing record periods in Europe, and the business is in great shape. In North America, we're launching an innovation bundle supported by investment, and we're growing share. In Baby Care, the premium end in North America is doing very well, with Swaddlers growing share by **1.4%**. We expect significant acceleration in the mid-tier Luvs brand with new innovation now in the market.  **[PG_3394998_10]** 

5. **Consumer Environment and Demand Trends**  
   **Q:** What are you seeing in terms of consumer behavior and market growth?  
   **A:** We generally don't see the dynamics of a pressured consumer. Private label shares are generally in line with pre-COVID levels and not changing significantly. Category volume growth is consistent, with **2%** volume growth over the past 1, 3, 6, and 12 months in the U.S. Similarly, value growth in Europe is consistent. We remain encouraged as we go forward.  **[PG_3394998_11]** 

6. **Commodity Cost Outlook**  
   **Q:** What's the outlook for commodity costs and potential headwinds?  
   **A:** We expect a **$300 million** headwind from commodities in fiscal '25, mainly due to pulp, where we continue to see strong demand and limited supply. The rest of the commodity portfolio is stable at the moment, and transportation costs are flat overall.  **[PG_3394998_14]** 

7. **Price Elasticity and Promotions**  
   **Q:** How are you seeing price elasticity and the promotional environment?  
   **A:** Pricing and mix have been a positive contribution to our results for **19 years**, and we don't expect this year to be different. We anticipate pricing for foreign exchange headwinds and innovation-based pricing as we have a strong innovation pipeline. The promotion environment is stable; we're operating at about **85%** of pre-COVID levels and see general stability.  **[PG_3394998_13]** 

8. **Marketing Investments and Effectiveness**  
   **Q:** How are you approaching marketing investments and their effectiveness?  
   **A:** We have significantly increased our media support and are fully investing in the business. We're seeing the results of these investments in strong growth and consistent share gains in North America and Europe. We'll continue to monitor the effectiveness of spending and adjust accordingly to ensure optimal delivery.  **[PG_3394998_9]** 

dcbdef9af76b71c3237fbb12bf8ea6e31f4536f6d7262e0675bcf7144304931e

1. **China Sales and Outlook**  
   **Q:** How do you assess China's challenges and outlook?  
   **A:** Andre acknowledged that volatility in China introduces uncertainty, but expects sequential improvement as they annualize base effects in Q2 and Q3. If China stabilizes, they could reach the midpoint of their **3% to 5%** organic sales growth guidance; improvement could lead to the top end, while continued deceleration may point to the lower end. They are adjusting to changes in consumer behavior, enhancing distributor partnerships, and focusing on innovation to regain momentum.  **[PG_3403071_3]** **[PG_3403071_8]** **[PG_3403071_9]** 

2. **Guidance and Growth Expectations**  
   **Q:** Can you achieve your organic sales growth guidance range?  
   **A:** Andre affirmed confidence in reaching the **3% to 5%** organic sales growth guidance by annualizing headwinds in China and the Middle East, and maintaining strong performance in the core **85%** of the business. Sequential improvement is expected, with the back half strengthened by innovation and easing comparisons.  **[PG_3403071_3]** **[PG_3403071_8]** **[PG_3403071_11]** 

3. **U.S. Market Growth and Share**  
   **Q:** What is your outlook for U.S. market growth and share?  
   **A:** Andre sees sustained U.S. market growth in the **3% to 4%** range, driven by daily-use categories and strong product performance. Opportunities include serving unserved consumers representing a **$5 billion** growth opportunity, and increasing household penetration in categories like fabric enhancers. P&G aims to grow ahead of the market and continue gaining share.  **[PG_3403071_5]** 

4. **Gross Margins and Inflation Impact**  
   **Q:** How is inflation affecting gross margins?  
   **A:** While some easing inflation is reflected, the main driver of gross margin improvement is productivity, contributing **170 basis points** in the quarter. SK-II being down **35%** impacts gross margins significantly, but annualizing these effects will help going forward. Easing commodity costs will benefit margins later in the fiscal year due to a **6 to 9-month** delay from actual inflation to P&L impact.  **[PG_3403071_6]** 

5. **SK-II Brand Performance**  
   **Q:** What's happening with the SK-II brand?  
   **A:** SK-II faces challenges due to its Japanese origin amid China tensions, impacting its performance in China and travel retail. However, the brand remains highly relevant, showing strong results outside China. P&G is investing to rebuild brand equity, launching innovations like a super premium tier, and adjusting marketing to revitalize the brand.  **[PG_3403071_9]** **[PG_3403071_14]** 

6. **Market Share Trends**  
   **Q:** How is market share performance?  
   **A:** Market share trends are generally positive. The number of category-country combinations gaining or holding share decreased due to pricing dynamics and lagging retailer brand pricing in Europe. P&G focuses on growing markets by increasing household penetration, with volume share as an early indicator. Progress is notable in the U.S., with growth in both volume and value share.  **[PG_3403071_10]** 

7. **Baby and Family Care Performance**  
   **Q:** What's the outlook for Baby and Family Care segments?  
   **A:** Family Care has a stable model driven by innovation in products like Bounty and Charmin, contributing to category growth without major impact from stock-up activity. Baby Care faces declining birth rates but focuses on providing superior products to trade consumers up, with innovations like Swaddlers and Cruisers 360 gaining share. Access to full production capacity supports future growth.  **[PG_3403071_7]** 

8. **Pricing, Promotions, and Consumer Behavior**  
   **Q:** Are you seeing trading down or changes in promotions?  
   **A:** The promotional environment is stable, with no significant changes. Negative mix effects in Beauty are driven by SK-II, and in Grooming by shifts within the portfolio. There are no indications of consumers trading down; private label shares are flat or slightly down, suggesting stable consumer behavior.  **[PG_3403071_12]** 

9. **Innovation Pipeline**  
   **Q:** Can you update us on your innovation initiatives?  
   **A:** Disruptive innovations like Olay Melts and Tide **evo** are performing well, with Olay Melts experiencing strong consumer response and Tide evo progressing in test markets. P&G is advancing its competitive edge through such proprietary technologies, with more details to be shared at the upcoming Investor Day.  **[PG_3403071_15]** 

10. **Retailer Relationships and Inventories**  
    **Q:** How are retailer inventories and relationships?  
    **A:** Retailer inventory levels are stable with no major changes. P&G enjoys constructive relationships with retailers, focusing on growing markets and integrating supply chains to create mutual value. The retail dynamic in key markets like the U.S. and Europe remains positive.  **[PG_3403071_17]** 

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Procter & Gamble Co (PG)

Financials