A：The highlights of Procter and Gamble's first quarter fiscal 2023 results include 40 consecutive quarters of organic sales growth, maintaining track for a 10th consecutive fiscal year of core earnings growth, strong execution of the integrated strategy despite a difficult geopolitical, competitive, and consumer environment, and solid financial performance marked by currency-neutral operating margin and adjusted free cash flow productivity.

A：Organic sales growth was broad-based across categories and regions in the first quarter. Eight out of ten product categories experienced growth or maintained their sales, with skin and personal care, hair care, grooming, personal health care, home care, and baby care each showing low single-digit growth. Oral care and feminine care were in line with the prior year, while fabric care and family care were down low single digits. Geographically, North America experienced organic sales growth, while Europe was flat, with strong performance in France and Spain offset by Germany and Italy. Greater China showed sequential improvement, and Latin America had organic sales up, while the European Enterprise region was flat and the Asia Pacific Middle East Africa was down low single digits.

A：Global aggregate market share was down by 70 basis points, but core earnings per share increased by a dollar 0.99 on a currency-neutral basis, marking an improvement over the prior year. Core earnings growth was attributed to strong productivity improvements and reinvestment in innovation and demand creation. Additionally, adjusted free cash flow productivity was positive, and the company returned $3.8 billion to shareholders through dividends and share repurchases.

A：In response to market and competitive challenges, Procter and Gamble's focus is on increased investment and flawless execution of its integrated growth strategy. The company aims to drive superiority across its portfolio, value tiers, retail channels, and consumer segments to grow categories, provide value to consumers and customers, and create value for shareholders.

A：The company's innovation programs include a strong initiative this year to build core brand propositions and grow adjacent product forms to enhance consumer delight. Recent product launches include Tide's biggest升级 to liquid detergent in 20 years, which combats grease and stains with an advanced perfume, and Olay Premium Body Wash, which contains facial skin essence and provides visible skin benefits. Additionally, the Pampers baby care business in the US introduced several upgrades, including Pampers Easy Ups and the first phase of restage to its mid-tier products, aimed at driving consumer trial and delight.

A：To accelerate productivity and drive margin expansion, Procter and Gamble is focusing on restructuring efforts to fuel investments in superiority, mitigate cost and currency headwinds, and to continue to implement productivity initiatives across all areas of operation. This strategy is integrated across all corporate vectors to ensure a comprehensive and unified approach to growth and profitability.

A：The specific actions taken as part of the restructuring program include redesigning the business model in Pakistan to an import model with local distributors, managing trade relationships, exiting several low-tier oral care products in some emerging markets, focusing the Olay brand on the most productive European markets, and streamlining the brand device portfolio in focus and enterprise markets.

A：The restructuring program is enabling related interventions in the supply chain such as rightsizing, locating production to drive efficiencies, innovation, cost reduction, and ensuring a more reliable and resilient supply.

A：The company expects to reduce up to 20% of its current non-manufacturing workforce over the fiscal year.

A：The company is maintaining all guidance ranges for the fiscal year with organic sales growth being in line to up by 1% globally, with the guidance including a 50 basis points headwind from product and market exits that are part of restructuring work.

A：The core EPS growth is expected to be in a range of -1% to +1%, with a center estimate of 0%, and a forecasted range of $6.50 to $6.90 per share. This outlook includes a commodity cost headwind of approximately $100 million after tax and a foreign exchange tailwind of approximately $200 million after tax.

A：The forecasted adjusted free cash flow productivity is in the range of 85% to 90% for the year, which includes an increase in capital spending and cash costs from restructuring work.

A：The organizational changes are being received positively internally as the company is on track with all elements of the restructuring execution. The purpose of these changes is to make roles broader, teams smaller, and work more fulfilling and efficient, aiming for a more agile and empowered organization.

A：The expected outcome of the portfolio review is to ensure value addition across brand, country, and category combinations, with changes in business models or resource reallocations where value cannot be added.

A：The company is addressing changes in the supply chain by reviewing portfolio choices which provide flexibility for further examination, and product supply teams are identifying interventions for execution, aiming for cost savings, agility, and supply assurance.

A：The reduction in manufacturing headcount is enabling the creation of smaller, more effective teams that are better set up.

A：The new designs are intended to digitally enable data access and analysis for consumer and brand focus, create smaller, brand-focused teams, and utilize technology for efficiency and speed. This change is seen as the third step in organizational evolution, enhancing both the portfolio and the organization.

A：The company's strategy in response to increased competition in North America's fabric care and baby care is to implement an integrated response across both segments. This involves increasing innovation and driving superiority to achieve sustainable growth, rather than relying solely on promotions.

A：To stay competitive, the company has continued to innovate and stay ahead in specific areas like swathers, cruises, and the pants business. They've also introduced value-tier innovations like Loft Platinum and are expanding mid-tier innovations like Baby Dry to the mid-year market.

A：The company believes that the innovation in fabric care, particularly the tight liquid innovation, is exciting, represents a significant investment, and is crucial for driving trade up and creating sustainable category growth.

A：It is important for the company to focus on integrated superiority because simply increasing promotion funding is not seen as the way to create value for consumers, retail partners, and shareholders. Instead, the company aims to achieve long-term value through innovation and brand investment.

A：Global aggregate share has decreased by 30 basis points over the past year, but recent readings have been closer to flat. The decline is influenced by geographic mix and category-specific competitive activities. The US has seen increased promotional activity in some categories, impacting share, although there has been sequential growth in absolute share.

A：The competitive activity in the fabricae business in Germany has led to a decrease in sales for the company, as they were up in the same quarter last year but down this year.

A：The China business has shown very strong progress, with a solid growth in a difficult market environment. Interventions such as innovation, go-to-market capability, and changes to the business model have resulted in market and share growth. For instance, baby care grew by 20% and SK 2 saw an increase of 12%.

A：The Latin American market experienced 7% growth driven by strong portfolio and innovation, with broad-based growth in Mexico, Brazil, and several smaller markets.

A：The company is focusing on value, which includes price and integrated performance, rather than just affordability. They are continuing to innovate across all value tiers, maintaining strong price leadership across different package sizes, and adjusting cross-price points relative to competitive offerings when necessary. The company is also ensuring it has the right value offerings across channels and adjusting its strategy based on consumer behavior, such as the shift towards larger pack sizes and specific needs for lower promoted prices by consumers living paycheck to paycheck. The overall approach is to present value to the consumer in a compelling way that goes beyond price.

A：In the US market, value is defined as price over integrated performance, with consumers showing a preference for premium products and trading up. Price mix is positive and sequential value share is improving, despite not yet reaching the base period. Private label shares are declining, and there's a focus on meeting consumer needs across different channels and price points.

A：The skin and personal care business in China is experiencing a slightly accelerated growth rate and consistent improvement in results.

A：The positive results in China are attributed to a better understanding of the market, innovation grounded in consumer understanding, and improved shelf and retail execution both online and in stores.

A：The company is well positioned to continue building the business in China and hopes to strengthen over time, which is viewed as a tailwind.

A：Procter & Gamble has seen a positive consumer response to its investments, with volume share growth and value share growth, as well as trade-ins and trade-ups across value tiers in categories like diapers and paper goods.

A：The company's strategy is to maintain superiority across all value tiers, upgrading products across the portfolio, including recent upgrades in auto dish, laundry detergents, and a planned upgrade in the mid-tier diapers. This approach has led to volume share growth and value share growth.

A：The company faces challenges in continuing to invest in a portfolio that spans multiple value tiers, as well as the volatility introduced by the commodity and tariffs headwinds, which can change quickly and impact the P&L within the year.

A：The company is preserving its ability to invest in areas such as integrated superiority, category growth, and sustainable share growth, focusing on volatile investments early in the year and ensuring that as tariffs are removed, the pricing is also adjusted accordingly.

A：The company anticipates that the underlying category demand in North America will evolve to be around the 1.5 to 2% range for the next few months or quarters.

A：The recent consumption deceleration is expected to lead to a lower run rate of consumption both on the market side and on the P&G side due to a higher base period, which means that consumption in the upcoming periods will likely be lower than before.

A：The company expects category growth to return to ed percent both in the US and at a global level, driven by more users in the category, increased usage, and value per use. They also expect Western Europe and Latin America to show similar dynamics to North America.

A：The rest of the world, excluding China, is performing well with strong volume growth in categories and value growth. The company is focusing on ensuring value creation in every category and country combination and is making necessary changes such as those announced in the recent release. They are not expecting any dramatic changes and are comfortable with their core portfolio.

A：The company's strategy for suppliers to get their products in the shopping basket when consumers are shopping through pumps involves ensuring that the company understands the consumer, their search for information, and how products are selected for the basket. It also involves working with retail partners to understand and communicate the brand's superior proposition effectively.

A：The recent changes in tariffs and distribution have positively affected the company's performance. In the US, the administration has granted exceptions for materials that can be grown in the US, which is highly appreciated. In China, the interventions on distribution network have streamlined the market approach and are starting to pay dividends without being a one-time effect.

A：The updated pricing strategy following the reduction in the paraffin factor involves pricing adjustments that were already announced in July, taking effect in September. Most of the pricing was innovation-driven, with tariffs being a contributor but not the main contributor. The company has not changed its pricing approach.

A：The company is performing well despite consumer weakness and a challenging macroeconomic backdrop. It continues to make sequential progress in absolute share and expects to exit the US with neutral to share growth by providing better value propositions to consumers through integrated superiority.