Earlier this week, Jon Moeller, Chairman, President and Chief Executive Officer and Andre Schulten, Chief Financial Officer spoke with investors and analysts at the Deutsche Bank Global Consumer Conference.
Andre began with a recap of the strong Company results through the first three quarters of this fiscal year — as reported in April — in what continues to be a challenging cost and operational environment with unprecedented headwinds. Organic sales grew 7% for the first three quarters of the fiscal year, with improving organic volume trends, going from -6% in Q2 to -3% in Q3. The strong top line results this year are a continuation of the momentum we built well before the COVID crisis, with organic sales up 6% on average over the last four fiscal years.
We remain focused on our strategy and on delivering balanced growth, investing in the superiority of our brands even when our costs are rising sharply and market realities pose increasing challenges, and especially when consumers are even more focused on the performance and value of the brands they choose.
Jon reinforced that our team continues to operate with excellence, executing the integrated strategies that have enabled strong results over the past four years, and which are the foundation for balanced growth and value creation:
- A focused portfolio of daily use products, many providing cleaning, health and hygiene benefits, all in categories where performance plays a significant role in brand choice.
- Superiority to win with consumers, where we are again raising the bar on all aspects of our superiority standards — product, package, brand communication, retail execution and value – to offer even greater delight.
- Productivity improvements to fund our investments in innovation and continue to strengthen the long-term health and competitiveness of our brands, manage through significant cost increases, and help drive balanced top- and bottom-line growth, including margin expansion.
- Success in our highly competitive industry also requires agility that comes with a mindset of constructive disruption, a willingness to change, adapt and create new trends and technologies that will shape our industry for the future — capabilities that often extend our competitive advantage.
- Our organization is increasingly more empowered, agile and accountable, with little overlap or redundancy – flowing to new demands, seamlessly supporting each other to deliver against our priorities around the world.
We have an ongoing commitment to, and investment in, irresistible superiority across the five vectors of product, package, brand communication, retail execution and value:
- Dawn: Dawn has delivered outstanding results behind innovation that drives product and packaging superiority, with Dawn PowerWash, Dawn EZ-Squeeze in the U.S. and Fairy Max in Europe, and superior communication and an upgraded formula across the entire Dawn lineup. Over the last 3.5 years, Dawn has delivered over 90% of the U.S. hand dish category growth, with value share up 10 points.
- Safeguard: Safeguard Detox Bodywash in China is driving category growth, going beyond cleansing to a superior usage experience in packaging that dispenses a luxurious foam 10 times creamier than normal lathering, and superior communication where the consumer chooses — and growing 80% this fiscal year through March with value share growing continuously the past 3 years.
- Ariel & Lenor: In Europe, the new four-chamber Ariel Platinum Pods are driving strong consumer demand with a high-performance formula that enables cold water washing — a benefit to the environment and consumer wallets — and consumer-preferred, sustainable cardboard packaging on Ariel and Lenor. These innovations are contributing to mid-single digit organic sales growth in Europe Fabric Care and double-digit growth in Fabric Enhancers through March.
There are four areas we are driving to further strengthen the execution of our integrated strategies: Supply Chain 3.0, Digital Acumen, Environmental Sustainability and Employee Value Equation. These are not new or separate strategies. They are necessary elements in continuing to build superiority, reduce cost to enable investment and value creation and to further strengthen our organization.
- With Supply Chain 3.0, we are creating the next benchmark — a supply chain that provides greater agility, flexibility, scalability, transparency and resilience.
- Increased Digital Acumen to delight consumers and create shareholder value across our operations.
- Our efforts in Environmental Sustainability are important to creating more value while improving our environmental impact, enabling consumers to reduce their footprint and helping society solve some of the most pressing challenges.
- And our Employee Value Equation, to ensure that working at P&G delivers a superior experience, value and equality for all employees.
Jon closed by reiterating that our focus remains on balanced top and bottom-line growth, noting that “We continue to believe that the best path forward to deliver sustainable top and bottom-line growth is to double-down on these integrated strategies, starting with a commitment to deliver irresistibly superior propositions to consumers and retail partners.”
Want to listen to the conference presentation? You can find a replay of the event on our Investor Relations website at www.pginvestor.com/event under Past Events.
See www.pginvestor.com/event for P&G's full Deutsche Bank 2023 presentation, definitions of non-GAAP measures and reconciliation to the most closely related GAAP measure, as well as cautionary information on forward-looking statements, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.