The Procter & Gamble Company (PG) Barclays 17th Annual Global Consumer Staples Conference summary

Short-term performance and market trends

• Delivered 4% organic sales growth and 12% core EPS growth for 2023-2024, meeting or exceeding guidance despite external headwinds like China slowdown, SK-II brand sentiment, Argentina deceleration, and Nigeria exit.

• 85% of the business is normalizing to 3%-4% value growth, in line with pre-COVID trends, with North America and Europe showing stable or improving volume share.

• No significant incremental softness observed since July; U.S. and Europe remain resilient, with consumers showing little trade-down behavior.

• Promotional environment is returning to pre-COVID levels, with a focus on innovation-driven promotions rather than deep price cuts.

• Portfolio now includes multiple value tiers and broad channel distribution, supporting growth in both volume and value share.

China and other challenged markets

• China remains soft with low consumer confidence, but share is being held in both online and offline channels; recovery to 3%-5% growth expected to take several quarters.

• SK-II brand is being rebuilt with new campaigns, premium launches, and improved consumer engagement, though full recovery will take time.

• Hair care portfolio streamlined, new innovations launched, and go-to-market strategies reset to drive category growth.

• Diapers category in China is growing share despite a declining birth rate; other categories are being rebuilt for growth.

• Middle East remains volatile, with limited ability to influence outcomes; focus remains on maximizing long-term potential.

Strategic focus and long-term adjustments

• Strategy is continuously tweaked, including a reset of the definition of product superiority and ongoing productivity initiatives like Supply Chain 3.0.

• Pilots for more agile, function-agnostic teams and digital infrastructure are underway to improve decision-making and efficiency.

• Margin expansion is viewed as an outcome of innovation, productivity, and top-line growth, not a primary target; no ceiling is set for margin growth.

• Retailer relationships focus on driving category growth and mutual value, not margin comparisons.

• Innovation remains core, with a shift toward simplifying portfolios and focusing on core brands, except in China where brand proliferation is part of the ecosystem.