PG - Earnings call transcript Q2 2020 | The Procter & Gamble Company

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Operator

Good morning and welcome to Procter & Gamble's Quarter End Conference Call. P&G would like to remind you that today's discussion will include a number of forward-looking statements.

If you will refer to P&G's most recent 10-K, 10-Q and 8-K reports, you will see a discussion of factors that could cause the company's actual results to differ materially from these projections.

Also as required by Regulation G, Procter & Gamble needs to make you aware that during the discussion, the company will make a number of references to non-GAAP and other financial measures. Procter & Gamble believes these measures provide investors with useful perspective on underlying business trends and has posted on its Investor Relations website www.pginvestor.com a full reconciliation of non-GAAP financial measures.

the and to Moeller. Chief turn Chief Vice will Officer Operating Financial I call P&G's over Chairman, Now, Officer, Jon

Jon Moeller

morning. Good

As remarks to questions. straightforward will relatively few to weeks. CAGNY this your as to a brief, was Taylor keep turning going David quickly prepared in quarter, just be morning additional provide and us I'm depth this at with another fairly

line, disruption bottom portfolio This organization line cash price quarter, was another up our constructive very mix. driven of two sales superiority, Organic top productivity, points volume and solid strategies. by three points and X%, growth, of

double Nine Two-year X%, XX organic grew high grew singles. Skin and Oral of digits. calendar Home Focus X.X%, X%. low Personal singles, global Hair growth Health and stack and singles. Fabric Family organic Grooming up sales, Care Care, and Personal XXXX year-to-date based. grew growth of average mid to Care, organic of mid-single markets of year each continues grew This grew categories Care sales growth Feminine growth Care Care digits, fiscal Care enterprise broad Care, be markets

for share up required perform We markets, quarter, US our up overcome well several X% to us continuing market the XX% and two very the aggregate to grow. China results largest in continue to These challenges.

this X% While we're in seeing in we're and quarter, this up working Grooming of still sustainably progress sales real results business signs Baby organic to improve with Care.

on in timing highlighted changes led that higher total quarter in timing VAT to organic into shipments due created completed. we shipments quarter, a the effect sales the lower results nearly half point Sales our just company last October drag as on third and Japan, to market, The quarter largest of last we X. went growth

Kenya, we organic Through challenges Hong on in sales of of this, the quarter Mexico Argentina, Turkey, UK, the Australia, over level markets, grew the Iraq, all market the Kong number increasing market. half. India, and Lebanon, X% an Nigeria, Chile, faced We and X% first

line, the share core bottom Moving versus earnings to up XX% were year. per the prior

was per so currency one XX% a Exchange up earnings per basis Fiscal core share a Foreign constant earnings a currency growth up share are on increased core year-to-date on XX%, basis. constant point XX%. earnings headwind,

billion margin operating paid, basis to $X.X billion dividends the quarter, XXX%. shareholders. cash basis and of XXX Gross returned up generation, of second cash repurchased, operating productivity flow points with free $X.X core cash of up $X.X continued $X.X in P&G of flow margin strong points, XXX cash billion of billion stock

market earnings quarter, another solid both share sales margins cash We'd generated advancing, earnings, and volume Strong per strong and strong categories to high continued core levels of and share geographies. and returned growth trends shareholders. across operating

geopolitical our of to behind set of to landscape response But and volatile face continuing competitive of continue all the mutually macro growth. and very We strategies. make in progress a reinforcing integrated we're a challenges and to

make To focus, to The to establish and brands. performance strategic strengthen as disruption on and daily the choice. focus culture our We where across in agility improve to lead build to as accountability, organization use and categories integral our chain extend superiority productivity of and we've drives reinforce constructive the portfolio innovation, and choices value made each brand other. our

and short, the are near balanced the growth macro foundation value well over term creation mid They and term. long for industry stronger and challenges. deal within position competitive with as to our They

of with X%. sales This underlying share core the year and increasing market with now earnings for to range compares fiscal are quarter X% X% increasing per X% Moving growth. share implying We X% last to X%. outlook growth sales the range range of to flow to continued well as year to growth the X% to to cash organic X%, guidance, guidance growth, growth increased X% we're return. again productivity, free for cash organic our and We market as for to X% started

into the the the to at last the X% year. We XX% to of to we're growth range range flow started our X% again the from increasing to XX% our X% year On earnings to now X%. core XX% XX% for cash to guidance productivity a now quarter XXX%. per adjusted and quarter bottom share range to for outlook We're free increasing year last and going raised the line

our long and outlook of to dividends $X cash a from now cash our in to XXXX. billion billion significant over range $X for $X returned billion billion increasing share to extend repurchase in billion to track range generation We'll and $X.X a fiscal record expecting of of pay $X

year trends. strong line bottom line. Pricing annualizes affecting results, both comps the of and through top keep While that please we first the back we've year, move and in delivered difficult half as the move more bottom get half both top mind through we line as

earnings of and are We'll the bottom Boston level Oral which Competitors headwinds building require I mentioned top challenges innovation And to outperformance, divestitures continued will QX. equity and on brand line market the the comp be investments in earlier the Care for the part. year. will landfill and gains our from balance responding our

within additional rates, significant increases not or current prices Our currency market foreign are ranges. new guidance improved commodity rates, and disruptions on weakness, geopolitical is included guidance the commodity and based cost exchange growth

look forward a conference you the many seeing in few CAGNY We to weeks. at just of

thoughts benefiting further will David and provide engaging from reactions. mentioned, Taylor We to perspective we'll plans. forward I us on your you look forward strategies looking and and As join with into

I'm that happy With take questions. to

Operator

comes Stanley. of Your Dara Morgan line from question Instructions] the with Mohsenian first [Operator

Dara Mohsenian

retailer's to the quarter, want the as X% sounds the healthy fiscal the inventory but in that's approach still perhaps organic timing just is end. based some on each on I'm growth obviously year results assuming prepared I very focus like X% US this prior Jon, It sales quarters. Hey below it two Japan remarks. of reductions the of

looking and the look you perhaps shipment growth us you competitive update fiscal quarters. momentum results pullback, sales far to so underlying inventory at touch the QX that timing couple on incremental want with briefly give the seen recent within And changes, over of virus retail answer, environment. seeing last underlying and So the ex promotion Thanks. also of terms any in can anything just versus on China commodity at changed there? get performance Have your an then has impact that as on the an basis and just read the the quarter in from we're you

Jon Moeller

I could complete the whole there. call

we question, the with we're On pleased the line the just growth your completed. part top in very first quarter of that

X% you mentioned the we five to implying at that below prior delivered high the year, we end first know, guidance was and delivered quarter, in something for our beyond all quarter, as you of the range. As fiscal three the full that

at an least and As through across built we From I of mentioned in prepared that anything December, very you've which And outlook to quarter. uptick haven't market would the current And be consumption based broad kind us seen my continue cause change strong. really share. categories that regions. that of numbers, the to seen first part both we standpoint, remarks growth underlying was

while levels all building the the broader increase, continue geographies. to as that there, are look So behind growth increasingly investing superiority both and our market is categories you margins. at share fundamentals We're building and we're

quarter in some headwinds two have did items. from the We

three. probably mentioned You

and benefited impact Japan prior You had which point quarter. the that one is a which mentioned half

The real – situation impact and The and this in my economic, even. happened other and be gathered of dynamic individual last Kong on has travel I in what's other in we an retail also a prepared the since on business. about market quarter has to been continued geopolitical, well, had the which last had a the impact Hong the in difficult, series mentioned think markets. societal remarks impacts I mean,

of back whether burnt are that's level America events stores in market Some or place. where Chile, in Argentina yet the and not South were

numbers that, build built very the that year. allow you're Middle Some penetration deliver in able for deliver overcome And – that we're of forward of headline pleased business those balance and of the share very very impacted impact in will us I'm our all still items East us the benefits. household the line familiar going well. bottom were very we and significant with events as strong to to our and items that

are environment ago, competitive question. part Promotion down. up a to. – a that's at index The which for was I of year quarter, where category all visibility typically of your percentage the our individual in standpoint sold point. XX the are visibility don't last versus to actually sales future. And competitors the up From they're levels second promotion have have I and

what we healthy. we by today That of later into So in get want seeing continues of downward means. front very competitive you can look detail. spirals not very simply tomorrow, more if can change but others with to any and activity indicative that's We're price us have this

China, at a China. very pace But trade moves prospects our It's very increase difficult and standpoint. optimistic in It to the our fast we we rate channel both consumer are about continue growth of that of market. in market. a

fiscal plus plus at minus of last following we and five, plus four year-to-date were XX. fusing years year minus ago, The plus XX were we recall one. seven, You'll year, plus at seven, one, – plus

can relative idea affect impacts be developments like our can impact double new the I to if it's Care talking because are parts Care virus. any, rates growth relates obviously It business. those I confidence digits, XX%, the broader which what and things to of some Fabric some Skin a what this to well of to as no that high categories employees think so in China. consumer monitoring travel, our important Feminine It very it's do generally within forward. continues market. have the affect a market. mention of And XX% health has, closely can going we'll going very it to Care, that to I'm market strong beyond in large both that in really on that one be strong have it see attractive So does have whether the communities. broad categories. also the We're over that But was affect

volatility And is without I think important many the positive, without about as challenge. prospects we risking so us we but not front pieces it's future keep the view one extremely which of for just of of the that's generally

Operator

And of will with line the from your come Strycula question UBS. Steve next

Steve Strycula

good morning. Hi,

The versus quick responses. you're one would your broader And retail opportunity in the Hong to beauty bit be So Jon, a you. performing based question just with then extend how broader China in be Thank talk to is the what and SK-II right global SK-II now, to the spectrum forward? the topic is markets we're That specific what travel to to I'll seeing across clarify Olay can you broader it in would stick portfolio that a seeing is is looking And Kong slowdown or here. China. clarification. one little of to just

Jon Moeller

Another growth our well. retail Beauty consecutive I'll growth to each three do X% the to try quarter. based. efficiently. This pieces of broadly XXth with the Hong broad quarter continues is of get Kong. parter, grew of in extremely Travel up is Healthcare QX X%. That concentrated to

grew a SK-II I It balance in is Hong – XX%. of up dynamic extraordinarily Our in was where well. strong the the business And business as the both China, but Kong Skin dynamics. the as business Skin strong, Olay to and has actually well. VAT big was quarter Care double broadly given a digits. slow doing mentioned, for SK-II Personal relatively and Japan

strong which double digits, Our grew beauty, again XX%. part Safeguard is of double our digits over business,

the on a China both in basis global So within market is beauty broad and the based. growth

rates. asked the I'd the right so by in available. there don't first as I There evidenced questions? expansion. the of another significant – the but that also are Yeah. right other in There are all, expansion in opportunities think SK-II markets growth time we're and opportunities – Are are there current way, you question,

Operator

Morgan. comes Your of JP next Teixeira the from question with Andrea line

Andrea Teixeira

want Hi, any into just just conservatism to if click the more the China backend given you happened what of how what on for of the you're the it good evolved morning, everyone. on Thank double level baking you. the recently. said China, – from year I and quarter

Hair is in expected continuation be you've discuss gating for what also Thank coming could got back, you so effect SK-II. you. from what all the Care think I So a deceleration and a

Jon Moeller

questions China, digits high the rate of is Hair me China in Let time. assuming We context. mid in a growth in in the grew about first I'm to the talk Hair and the which single Care fastest period Care is

businesses things. And some that so other offer to soften competitive activity you that other to if yes, offsets can will or may

business the Care many categories. highly a hand, On the other business Hair is highly, as competitive are other

can So the dynamics rapidly. there change quite

over margin we if continue of time, do steadily is increase to business. our job that, a superiority. continue Our And to have if not to quarter-to-quarter, we'll strong

the mind we provide in answer and thing as we year, of occurs. which Year, China company. calendar you with earlier half of the China is question terms beginning balance the specific all it obviously is to the in timing relative that I'll back the One New the is, which happening year is than Chinese In to China for both this conservatism in of on of the guidance keep press don't know, speak. the from typically recently And

likely of there P&G situation. specific be it's in period have period. relates basis move significantly, so the been wouldn't the global aware And some and But just doesn't to the the that that but was China there needle sell OMD to something on prior as a

in increase there the level or us the the half my could impact in about talked about We talked year. in and year the the prepared impact back headwinds some half us market back that I of of exist of the will in quarter the dynamics. that remarks

the rates challenges and well take if for of year. balance market we're of have take in be with, Indian the situation and large, So quarter, like the situation the same through very very chair. and the example, may the there for slowed, a exist the a the that and will balance for But growing you same that not That growth the still the end year. in at market the Iraq, happened will Lebanon, market, the but impact increased The Chile. remain of likely doing building have

thing continue that's one to to one that reason, that be to progress we to strong make. needs netted hope against So

The the increases. price other of is annualization

pricing don't annualize. Family from a example, to price how ago. But about both know in price our So their well held most calendars handle though the most our year start calendar for going forward. to is hold. that's we what of based. last the far. as going some are a we're described from That's going taken can limits. as healthy. Care implementations be as price from that. February, Dish categories, a I have we I talked, very we That so fiscal – a ago increase about growth. new kind speak. But don't competitors all less annualize off year increasing are them regardless to And healthy of we've of thing. I've will understandably, It impacts of obviously can of over Care increase and it's third talk year investments that annualization And And year for benefit can what certain many the of environment. want grow competitive years evaluation But They increases the for And

progress, continue that superiority things backdrop, making on dynamic, It's the that against of Now, we not all board. control strong of across very static. make is to or we margin the increasing our it's progress

time our to productivity support communication moves and of because that in moves businesses We're Care. position growth back, expect forward some higher of to we'll have it but programs And superiority. our in that's really forward deliver move Baby of time. over we net move. some categories. So will like is a take I and many a driving the rates growth invest And on outsized

challenges So future overall, near be irresponsible holds, to that what optimistic where at acknowledge but we're the the term, the in not stand least very today we would it about and exist.

Operator

come with next And Barclays. of the question Lieberman your line will from Lauren

Lauren Lieberman

were impact talk just thanks. mentioned devaluation And driven about curious if still been apart, Great, ask trending pricing. performance specific little and you'd markets, the just some going how to one Good made And to you've shaving. Billie. you developed wanted are I been to right. Gillette question. And and was just Grooming sensitive, particularly already some the business moves, things portfolio several could I morning. about There's I'm of a to bit to there talk acquired you've

making so would chipping maybe how little not lay you you're give great. there much of or in care can away be So of a and land shave us the bit progress

Jon Moeller

Thanks you've managed that done. to is three question which well Lauren. within And ask one very

up that's strengthened third overall, business and quarter quarter in consecutive were of the growth. Grooming we X% the Our

last we much ago, points, we've grew not much share dry to XX as is SkinGuard the business pretty our to business was on a up to encouraging. three brand. for US, now not both our very is is value share within most we're and Shaving Encouragingly, as P&G as response investments users our brands added wet as is shave largest well sub for contributing unlike point of market year grow. Importantly, And products XX the over category to In SkinGuard shave – business, continues shave online. and X%, it's example, I million did growth; the which that but third which expand. months. communication. competitors doing global mean razor our a versus And seen we've new the strong building in in

a very related a it done that benefit from several created capabilities excited and And we pretty need Billie needs set one-to-one potential on that a something And until magic. skills, we to. create unique think experiences on mass there's separate to regulatory new we're focus knowledge That's Billie to marketing, But continuing clearance. across categories. increase our Clearly, is can business real has about and we to digital fresh that experience something their they've We're which remain P&G happens. fashion of extends obviously pass and that acquisition. the this brand the real in some to with they've effectively from and between that

have the of categories. capability across majority their We innovation

go-to-market certainly channel that a growth omni and have in in the We their And both brick-and-mortar, across that of the can best class in accelerate business. presence, manufacturing we categories. have majority online

are working clearance potential the process. we're very and excited So through about the

Operator

line Bernstein. come the next question And from Ali Dibadj will of your with

Ali Dibadj

Hey, on wanted starting more – of of price investments I coming. like more in to recent future increases your is think be future the of solidness about pricing the murmurs for detail to competitive ask some Jon I there of kind given view globally just

yesterday's questions. just You context, in Europe, what lead terms know, anything talking within is Exedy fall. recently clearly [ph] pricing, you you're can the for yet. or competition? you So commodities for our is change a price seeing cost time of kind it's notice tomorrow? Again, all then clear may really or like comfortable of two And of most to of that recognition. it's in part quarters, literally second thing But is saying clear pattern two this not about continue feel get One and quarter jobs like

so given that prices, and question the decline. in on patterns you down And seen of go commodity everything think the on So seen Do of if been Family, categories, historically, have time in how a there's so technical timing, these increased there's different especially is kind we've maybe you for. with this of we you. rate's Thank types for it and why? do more a, see this

Jon Moeller

just America. talent the I commodity market than a a is know we related a that in. a about first, see that. talking talking believe that Exedy which current the different That not is to you Thanks, very market they're in more commodity North they of we're Ali. supportive standpoint, market were competing know as I what It's Obviously, much our market. prices of In prices from market. about, primary is general, which

increases of kind they're effect, were justified and space. those kind necessitate while particularly we environment would pulse does the continues of an feel see where for current And there. commodities levels go flat that historical increases, not slight future went price our activity. to So to the indication before to I prices the relatively be sea of into in But are versus some I don't change the that activity, speak down won't we the in outlook

we advance to increases. of question. what Having not the do they responsive notice to do have of do gets price implementation said that that second each to we and competitor will choose And to need your which candidly, be

decreases are we sorry, one. – either And so

is And anywhere And those so in to the react reaction six we from as a time, months. quarter typically we that see marketplace.

along reasonable big think dynamic benefit of or a going time. I quarter odd don't or expect to that but may this a about. hurt, forward not of So crippling of thing a anything period two if to we a be cause worry resembling and

Operator

will with next Nicholson Your from question come line of Citi. Wendy the

Wendy Nicholson

but less of felt to Hi. terrific. your a Unlike been some who trends the And two the of wondering, benefits Are been you maybe initiatives. kind this for have that or outlook, coming. in expansion margin program? Thanks your of end billion coming there do had accruing your of restructuring keep you for the margin your seems $XX year the program three quarter, and lot next five just sort your you know to I how peers next not of what's And years? for the Is when productivity driven have by come you're I'm of another program. into productivity

Jon Moeller

of are Thanks, it of nature, because hope needs Wendy. as as invest we move margin choices, And and will our strategic I our in progress advancing just I to as mentioned as rightly this journey, the is reflected point And an one strategy. integral holding made leaders which to you lot we of continue we've superiority. margins – productivity our out, integral we part to My is is make be innovation. to operating in be need as forward, this think that of that on a desire our of as productivity in quarter. our in innovation, simply to certainly

about of to resources, delivering disruption some very we're good of investment cetera. capital, will business units and commitment that's continuous the Some human et productivity. I the each And also about require continue talking understanding in feel

I available to that organization than and place other degrees freedom floor we've are digital more ever more to of that do the which us the or marketing they another. is of office now about the think thing, enable And productivity, Will that's don't as are in one we there environment, we across there is part have our that more how had opportunities degrees is, to spectrum there us learn of they question So that – that still in occur? brings a to have freedom and are to we the more another where been delivery significant of manufacturing improve opportunity to efficient offered terms even I And and within become believe we structure everywhere it never opportunities are. about opportunities today. more effective new the certainly to from think and tools

just week, to I attended entire way a David, our supply signal innovation product relative sustainable there delivery last order chain robotics, supply and of of geographies. all markets back review program with the transformation along to a sequencing across are supply relative product of big middle opportunities tighter the where from a and the to

So to to we that be deliver opportunities have strategy that. and will productivity and tools of believe inherent the part an our operating continue to I continue

Operator

And the come next line will Tong your from question of with of America. Olivia Bank

Olivia Tong

point, that basis continues good there's XXX quarter. think this advertising a because want in bit investment about little at up talk thanks, of this move already the base. I to a morning. bit points to I And Great, fair

sales continue increase? Because seen goals you of percent obviously, expected? is haven't to optimistic is said So of that in need that there it more was change this applying to Or on always promos. anything that you that than Was a – defend? much you we to

is wondering you. Thank that So just going advertising towards? where dollar

Jon Moeller

A been Olivia, clear. couple of things there we've very

reason attractive advertising would partners, a to we spend be trade innovation. have every advertising simple. innovation proprietary dollar retail and standpoint in with to need is incremental the nothing week. The prefer offer advantage the both can we to build that where very or competitive and our I and to day degree There's spending while of that pricing, margins we on flexibility, need of we proprietary think

on well a we're as again, And attractive it and margin, because it it. categories. have make grows doing our business where those to that way we we're the to drives So opportunity retail is in doing the shifts, partners

about a opportunity Officer what a talked Marketing has into Pritchard, second been advertising. working billion move lot lot about, Marc our non-working shift The a continues. and talked amount Chief the externally it And significant piece is dollar we've were a and of about to that's and historically dollars

piece when that's third is the of And superior. noticeably have this you innovation

innovation You have be superiority strong that need the value to left And good terms of has the benefits just beads a of and lot that both legs which that standpoint. We market of have consumption be performance continue would consumers. a in in on also opportunities communicating the household to in in number like from have those supporting with something mentioned been lot want years general pure as delighters we and significant move the a marketplace to to and that for but of competitive comes I penetration we our paws both to launched a relates invest and or activity, them news want equity ensure either to is that those. very innovation will as we or forward.

Operator

come Kevin the question from next Jefferies. Grundy your of And with line will

Kevin Grundy

Jon. execution performance I Skin and a market about how the obviously certain talk about come between maybe difficult talk the Care, digits. progress Fem Proctor strategic very up strong You that's by that bit versus category expectations this up in superior morning think XX%. of in quarter. much here balance bit the of little and Thanks. particularly in your Care, the Proctor strong delineate quarter year? category which Good then we Maybe is was Can notably double for market and share just you categories Congratulations a strength strong was company's back Can another to on changed? a China against how comparison?

Jon Moeller

so you, our to from XXX%. something market It's I efforts. execution and in grow we we But an of It's Thanks obviously an it's hard many Kevin. job as helpful realized honestly not standpoint we standpoint markets, to growth our point. by separate that's separate do if those innovation a growth, don't because that view it's cases, caused but that important our efforts. an from is not right

bit As area The and relates pressure of strong a to a Baby be have category our is continues Care at impact. year up in million to rates, category babies gone the significant that a little it from birth XX China, that point we which one that's in look growth categories. I from down back stand and about from is which growth to under XX,

On business in the of XX%, on pants or whether answer and significant category diapers on within and part but China style category, depending strong. diapers, XX% the growing remains the other that's premium very hand, or tape opportunities growth is are premiumization premium is our there general that

that pretend is not it's changed category you that rate within Skin P&Gs full inflection also our The in you category. I a abundant for category, category specific – if that growth gone on in efforts on growth Care, not the will albeit second progress growth we've and has impacting mean, results it's they're of if answer share real. the very a the that

good stronger both go-to-market to thing. gains in fuse it's is we've as The well improvement top been. Is gains. we've apart? from Hair The like be So declines, we'd strengthening, declines not still it's from what perennial and that's to as much business efforts of on digit definitely our Care it improved a line hard innovation for gone strong those result that is perennial and and answer a to so where branding double me simple but

Operator

Jason Your English next mind Sachs. of come will from Goldman the question with

Jason English

good Two morning, Year. New Happy Hey, folks me. for and questions

in as XX next bleak was Care comes it we growth? of take kind you Is been quarter. the and calling quarter you Baby, US, little First to nuance the one this growth, despite there decel any out in but while. harder of what weaker everything easier you for and to the get walk as it is than that kind for mentioned X%. is about seen you. from note has and on Fem like I a And the expected an solid been worth on segment, should Obviously, there a this context we secondly, we've what business, then plan a know a growth business it's US else. anything that months? last think expectations Family It's us of be little of on Can game comp. our through Thank going

Jon Moeller

And US quarter. we difference which started. very, share the call a built the Part happy business XX.X that Nine at to But see chop, very if initiative The is would categories months last we're didn't There's we three, X% earlier progressing. expect look of XX is on be over impacts one the as that we quarters to a you data, the across or number significantly in past and I of time, as the of pretty second we quarter. longer very, six consumption through that back at building either grew the a underlying the in well. the remain quarter-to-quarter where continue our a some a discussion very reflects going was is timing you've it market look and least things. way continues in US at forward to period start index. this if went very trade of strong. periods. reduced We seen, market inventory, strong share. The going growth to XX between basis. US it going indeed in I'll this the XX.X slightly of with it's at as scanner was

in From we've on And where about again relative and two years basis about we the largest regain our and healthy. grew year, at – from – That's at Care leadership market share half semester – fastest ago China growth a to hold Baby relatively in a Baby that. the position continued which if have half, on first look We if had the years. X%. ranges markets, we the up you basis China of six a two look a slightly the first is those we've better been was are at it Care US, to flat standpoint, from in.

broader in mentioned, should we're about as our Baby As superiority. on which answer, I again, business is businesses pants last premium flat business, innovation And both the year Care versus we're growing a well a relative position builds to very, an what ago, basis. which improvement those US as the take stronger of is The very strongly. our business

the offering a of portfolio, across superior It's than parody those have some not product. We product. of cases parts been of larger

in Beauty innovation that's has and really pace We mentality, place of hopefully, I endeavor we have that only as lot an the results of China talked market, it's the the we'll whether continue or go not innovation, driven overnight But and which we coming increase to in about. plans improve not of but Care, innovation Baby it's eco to amount terms Care a a strong sequentially forward.

Operator

And with Astrachan your next of Mark question will come from the line Stifel.

Mark Astrachan

The to you, bit. down of good maybe Jon. just I little a business question guess seems morning, versus rest enterprise slow a and everybody. Thanks for quick

How maybe really DM the happy slowdown issues has on is laughing kind dynamic et Hong versus Chile, you and versus a the kind thinking about about specific in terms pricing bit anymore, of You to of on guys cetera. about don't talk that touched forward but driven basis? be a go Kong, talk country that of what EM much

Jon Moeller

really you We're border that's significant mentioned We I'll pretty and with despite impacts. digits. digits. digits at the of pretty enterprise markets growth pleased in with these rates the mid-single the high leave mid-single And currently. It's single that.

of in enterprise the rates and and largely the If bit recession. liquidity about as India monetary created growth inventory drying up Mexico's a to talked result through you But are two in Mexico, an has in largest a which about technically, growth system. squeeze, economic of India policies, building think continue is grow well are the I of some from in and we share. a markets the of standpoint, India, slowing the which a environment

continue there. grow well reasonably We to

are and have We digits as single growing there share been well.

pretty more bottom be creating we're to markets question have. just line, with though value your continue on ever in wasn't briefly, of our then we we pleased progress. currently these part the broadly, So And it even

double digits, We and of was that to on the our markets on we're in strong bottom what creation focused focused well a company these progress return that's generate and ahead meaningful doing where be of value average. opportunity. can tons there's So need line includes we growth

Operator

Robert will ISI. line question next of with the Evercore Ottenstein your come And from

Robert Ottenstein

kind focus on like Jon. of ecommerce. you, I'd thank to Great,

of in the China, you basis, is fast in ecommerce are in is moved gaining US? to I think a And how US specifically past, it China X% you've sales share said the in closer and that global up the XX? how in fast how that then it's growing and maybe fast Thank you. globally, on about

Jon Moeller

at be significant XX%. a currently about for growing growth. to It opportunity It's continues

of in our I'm is increasing. And share clarity talking differs categories. channel. markets, for omni which of I well, level across ecommerce growth – business. that markets. the what obviously It when total the about It's has just general big includes I And now pretty mention And market that much in ecommerce, across ecommerce totality at XX% been our

us well constructive well each the wherever to, ensure and And again whether context disruption requires category. Of there's volatility ourselves by of space, consumers that's to so efforts, shop, small or those. and which significant relevant space, in progressing it We've that in offering, progress though ecommerce, generally, course, that, some format to very flexibility large committed to competitive that to eternal and see format. that's of been we offer succeed whether that in a we're a differs in want but making something as we're that's particularly china that's positioned that I

Operator

the with from come of Modi line will Nik RBC. question next Your

Nik Modi

the mean, a I to nice Thanks, morning. everyone. business. health can top Yes. you the care Jon, was pretty little bit about maybe Good contributor OTT a line. Merck talk of

wanted strategy would Thanks. context be helpful. Any driving kind to just business, understand what's that So there? the of what's

Jon Moeller

legacy a driving which positively a complimentary Merck it's the best business categories organic of way. It's the in far. we're that. out our asset of significant track to so on As This ahead the track, cost the possibility developing in still quarter the very days, but Personal and synergies to Healthcare those that. The is the of our contributed really our growth real we across that revenue of of strong Has felt are early sales you P&G bringing strong both addition on organization recorded closed a together by probably and really, overall great middle Personal to were complimentary business. integrating exciting and and both cost so has examples what as far driving synergies ago, offers It part is It's results doing there organization Healthcare of real they're good. are XX synergies months rates. revenue so, some presence first geographies world, the The job, with in synergies recall, just with companies a initial to a Merck plans playing had in growth. we're portfolio we very pleased our of

Operator

the question Chappell Bill will from next come line your with Robinson Humphrey. And SunTrust of

Bill Chappell

struggling. lot I a with to kind back just that can with good small the share guess even circling the thinks that also just on a down Jon, FTC FTC Thanks, cracking that and market acquisition, surprised with acquisitions morning. and Billie it recent just of little P&G are pass of your

XX-XX part a So kind you there share you US And why you forward opportunities you're do that's with moving tuck-ins that and of on got to where the more to plan, have then any if thoughts do on of think and of especially positioning. market? a

Jon Moeller

want we've of general, are relevant in chosen In all we we ensure serving to from the consumers the segments categories to level, that just plan. strategic that starting

and something so you the it's example, other more straightforward different do on standpoint, think natural in like of about groups growth consumers, segment, the high from Pampers Sometimes, of if Pure, with the getting sometimes that's some presence quick for these easier a easier organic segments hand, an acquisition. or to

which just early, segment idea in to this strong share has proven relevant categories So a not regulatory but grow of and really this very to the number the if motivation that. grow here. natural excited market But the standpoint, very going the on L this obviously, of expand – to That's be to obviously we're we far consumer to to very example from to I about work a Care, dynamics good I'm a is Feminine opportunity one quickly. so value. set and now have product or is create related anything speak very combined hopeful we're market

Operator

come will of Suisse. And your Gajrawala next from line the question with Credit Kaumil

Kaumil Gajrawala

board good the Jon, buybacks. about talk little think how share and in can valuation context Hi, bit morning. you of about a you the

decade a probably been obviously best are results in that data. they've the Your

the your value promised appropriately so is shares. So the of as

just little can a valuation in context? about So talk back buy you bit

Jon Moeller

in created forecast Sure, don't on the stock overtime the of which market's back, know We extraordinary we been look last on implicit going that. your at price. that increase have the today, question all value. don't over If to go. we But to where obviously, try is significant in a it I the decade, buybacks that's first pretend

no itself company. dollar There's general, strongly so, averaging And reasonably our as over about so cost of, a to reason and market prospects not will, feel we the we're good at in time. feel if very present you about kind

yield inclusive think retire with of our are thing change level some as other what at regularly we credit current with of with Obviously, The is dealing Because suggest an financing that can rates their that. we're incremental you to our plan world, very but broad interest a a every reflects we a And dividend is going to the that sit financing will, value board as be, reviewed context obviously rate? this allocation is here about to is, the today, something a in important, dividend in That's share rate we look this. do at and rates available. that is a of cost that, to negative within have limits I rail constraint, purchase attractive that's input that the with that many parts repurchase, to another relative plan. you're and stay don't to reason though, if is capital that's or time if the will, another continually lower we'll than you I financing topic

Operator

from come with Consumer Jonathan Edge. And the your will question of line final Feeney

Jonathan Feeney

farmer some at any I'd historical you five to to years of senses to appreciate? seem in the that growth data thank indicate spell segments more consumer that macro has would concerned context business in past that, become Are XX a you your Jon, you. but outsized that Hey, all have or

Jon Moeller

macro deliberate actually we're been Jon we've think I into sensitive very a And less the choice that's environment. made.

hair daily product Let were a example, into color, me – for And highly recession last of that. as of in number high be day. categories to to they're important through went get through instead to intentional relatively times like the that the two and just sometimes an just in salon discretionary examples. important fragrance, portfolio focus end was used as the explain part lot bad categories. in strategic our and get because is times Things use of We to our a we are multiple good use premium day,

through look that total would if resilient, ago. some I we're than lens, more portfolio at you the today macro years So we were argue

made we've the I increases product that inherently product The superiority, it on consumer the whole will package, that behind and say and reason investment we've to value. second efforts is continue set the make of put drivers that

is each happen that of result Not economic trade and value it And times. of things increases. of been like better dynamics would more higher position as down purchase to difficult immune, the relative macro inclusive So even than today. small a that position puts in have in but a can price better too us a

I thing as our been argue integral successful, and a being that is as creating would as extent to culture to where the we've third innovation. is productivity The

therefore of more financial more and degrees have We freedom. flexibility

manage we how can difficulties For the economic macro present. the situation that

a place today. much to – three So for better going reasons those we're I think Jon

macro we're And impacted a much continue there on world. historically. We any be challenge. negative to resilient not I'm create were of I part developments talking than right but ask. we will basis, if in are the It's the question absolutes, It think to does relative in more

back operating again, another per core line everybody summary. strong growth, progress, as share, share, step building earnings really generating building view strong forward. quick just quarter margins, this earnings thanks our cash, well, in We Great, Strong market shareholders journey Thanks. a top to many that's look to working an integrated strategy and forward as and all behind execute. returning We conversations. at forward we seeing I I said of earlier to continue cash to look CAGNY will you, our

Operator

that Ladies and conference. Thank today's concludes you for participation. gentlemen, your

Have disconnect. now You day. great may a

The Procter & Gamble Company (PG) 23 Jan 202020 Q2 Earnings call transcript