Emphasis on sustainable top and bottom line growth.
Geographical Focus: Addressing specific market challenges (e.g., Greater China’s weak consumer confidence), while leveraging strong performance areas.
Specific Regional Points
**China: **
Market contraction noted; recovery expected in long-term with a growing middle-income consumer base.
**Europe: **
Private label growth noted but managed with portfolio superiority and strong brand execution.
**U.S: **
Strong volume and value share growth led by innovation and in-store execution.
**Latin America: **
Extremely strong performance due to doubled-down superiority, managing currency impacts effectively.
Performance & Guidance Outlook
Overall Year Outlook: Targeting towards higher end of fiscal year guidance for organic sales growth, core earnings, and cash return.
Second Quarter & Beyond: Anticipate tapering pricing benefits, re-investment strategies, and adapting to potential economic uncertainties.
Long-Term Goals: Maintaining balanced growth and agility in investment strategies, focusing on market growth, productivity, and constructive disruption.
Expected Financial Impact: Commodity cost relief ($800 million tailwind), major currency headwinds ($1 billion after-tax impact), higher inflation in wages/benefits.
Cash Plans: $14-$15 billion return to shareholders expected this fiscal year.
Q&A Highlights
China: Soft market dynamics but long-term opportunity remains. Caps on Luxury segment can impact (e.g., sk2).