The Procter & Gamble Company (NYSE:PG) Barclays Global Consumer Staples Conference September 5, 2019 8:15 AM ET
David Taylor - Chief Executive Officer
Jon Moeller - Chief Financial Officer
- David Taylor - 首席执行官
- Jon Moeller - 首席财务官
Lauren Lieberman - Barclays
- 劳伦利伯曼 - 巴克莱
Unidentified Company Representative
下午好，感谢您加入我们Celestica 2019年第二季度收益电话会议。今天的电话会议是总裁兼首席执行官Rob Mionis;和首席财务官Mandeep Chawla。
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. Additionally, the company has posted on its Investor Relations website, www.pginvestor.com, a full reconciliation of non-GAAP and other financial measures.
宝洁谨提醒您，今天的讨论将包括一些前瞻性陈述。 如果您将参考宝洁公司最新的10-K，10-Q和8-K报告，您将看到可能导致公司实际结果与这些预测产生重大差异的因素的讨论。 此外，该公司还在其投资者关系网站www.pginvestor.com上公布了非GAAP和其他财务指标的完全对账。...
So we're fortunate to have both P&G's CEO, David Taylor; and CFO, Jon Moeller, with us at the conference this year. It's amazing what a difference a year makes, but, of course, the change in P&G's performance hasn't happened overnight. After more than a decade of trying to deliver a quick turnaround, we believe P&G is now investing and planning with a longer time horizon, truly listening to the consumer and adapting to new competitive realities in a way that previously seems unthinkable. The revenue growth has clearly turned a corner. We think this is just the beginning, and we look forward to hearing more ways in which new strategies and ways of working are beginning to yield better results.
所以我们很幸运有宝洁公司的首席执行官大卫泰勒; 和首席财务官Jon Moeller今年在会议上和我们一起。 令人惊讶的是一年的差异，但当然，宝洁公司业绩的变化并非一蹴而就。 经过十多年努力实现快速转变，我们相信宝洁现在正在投资和规划更长的时间，真正倾听消费者的心声，并以一种以前似乎无法想象的方式适应新的竞争现实。 收入增长明显转向了一个角落。 我们认为这只是一个开始，我们期待听到更多的方式，新的战略和工作方式开始产生更好的结果。
Thank you, Lauren. I'm going to start with a quick summary of fiscal 2019 then David will spend time on four strategic focus areas: Superiority, Productivity, Constructive Disruption, and Organization and Culture. And of course, we'll save time for questions.
For fiscal 2019, organic sales up 5%; core earnings per share up 7%; currency-neutral core earnings per share up 15%; adjusted free cash flow productivity of 105%; $12.5 billion of cash returned to owners. Each of these metrics in line or ahead of objectives set going into the fiscal year. All of this progress against strong headwinds. FX, commodities, transportation costs and tariffs created a $1.4 billion fiscal year after tax headwind of 13 point negative impact on core earnings per share, all overcome with innovation-driven volume growth, pricing and productivity, yielding strong results for the year. Capping a strong year, a very strong fourth quarter, organic sales up more than 7%.
Four quarters, 4%, 4%, 5% and 7%, volume, pricing and mix each contributing top line momentum. Broad-based growth, 9 of our 10 global categories grew organic sales in fiscal 2019. Skin & Personal Care up mid-teens. Personal Health Care, Fabric Care, Feminine Care and Home Care, up high single digits. Family Care and Oral Care, up mid-single digits. In the fourth quarter, all 10 global categories grew organic sales.
All six regions grew organic sales. 15 out of 15 top markets held or grew. Strong results in our two largest markets. In the U.S., sales up 7%. In the past quarter, up 4% on the fiscal year, 10 of 10 categories growing in the fourth quarter. Continued progress in China, improving from a 5% sales decline in fiscal 2016 to 1% growth in fiscal 2017 to 7% organic sales growth in fiscal 2018. Fiscal 2019 growth, up 10%, up 12% in the fourth quarter. E-commerce organic sales, up 25%, now well over $5 billion in annual sales or about 8% of the company total. Strong and improving market share trends. Aggregate global value share up versus a year ago in fiscal 2019. 33 of our top 50 category country combinations held or grew value share, up from 26 in fiscal 2018; 23 in fiscal 2017; and 17 in fiscal 2016, so on chronological order, 17, 23, 26 and now, 33. Eight of 10 global categories held or grew share.
On the bottom line, fiscal year core earnings per share, up 7% and 15% on a currency-neutral basis. Fourth quarter core earnings per share up 17% versus the prior year; up 26% on a currency-neutral basis. Fourth quarter margins improved, both sequentially and versus year ago. We increased our dividend 4% in April, the 63rd consecutive annual increase and 129th consecutive year in which P&G has paid a dividend. P&G is one of only 10 U.S. companies to pay a dividend for more than 120 consecutive years.
Only 3 U.S. companies have increased dividends more consecutive years than P&G. Over the last 10 years, the annual dividend has increased from $1.64 per share to $2.90 per share, up almost 80%, returning $68 billion of cash to shareowners. We're not winning everywhere. We still face challenges and continue to operate in a difficult, competitive and macro landscape. Our work is not over but we're making progress behind the integrated and mutually reinforcing strategies David will discuss next. David?
所有六个地区都有机销售。 15个顶级市场中有15个持有或增长。我们两大市场的强劲业绩。在美国，销售额增长7％。在过去的一个季度中，该财年增长了4％，第四季度增加了10个类别中的10个。在中国继续取得进展，从2016财年的销售额下降5％到2017财年的1％增长，到2018财年的有机销售增长率为7％。2019财年增长10％，第四季度增长12％。电子商务有机销售额增长25％，现在年销售额超过50亿美元，占公司总销售额的8％左右。强劲且改善的市场份额趋势。 2019财年总体全球价值份额与一年前相比有所增加。我们排名前50位的国家组合中有33个持有或增加了价值份额，高于2018财年的26个; 2017财年23日; 2016财年有17个，按时间顺序分列，17,23,26和现在，33。全球10个类别中有8个持有或增长份额。
Thanks, Jon. Good morning, everyone. One of the most encouraging points about the strong results we've delivered is the breadth of progress we've made across categories, regions and countries. The breadth of growth gives me confidence that the strategies and focus areas that are guiding our choices and investments are the right ones. It also gives me confidence that we're building the capabilities to sustain growth at or above market levels.
The mutually reinforcing strategic choices we've made are critical to our progress. We focused and strengthened our portfolio in daily use categories where performance drives brand choice in categories where we occupy number one or two position, which have historically grown faster than the balance of the company and done so more profitably. The benefits of the portfolio choices are clearly playing out. Within these 10 categories where performance drives brand choice, we've taken a deliberate choice to invest and advance the superiority of products and packages, brand communication, retail execution and the value advantage, growing the markets in which we compete and strengthening the long-term health and competitiveness of our brands.
We've raised minimum standards of competitive advantage versus each superiority driver and investing to meet or beat these new standards. A superior offering to drive market growth and this is incredibly important, increasing consumption, creating additional usage occasions, bringing more spend into the category and growing markets. This creates topline growth that is typically more sustainable than simply taking business from a competitor. It creates a winning proposition for our retail partners, high expansion versus zero sum, a positive versus negative spiral, and where we grow markets disproportionately and more sustainably, we build share.
Over the last 40 years, P&G U.S. Fabric Care has grown 5 times, 500% in a market that's grown 4 times. Market growth has been the primary driver of P&G's growth, which we've driven with leading innovation, and as a result, our market share has grown about 5 points. In meaningfully superior unit dose detergents, Tide PODS and Gain Flings have driven over 90% of U.S. laundry detergent category growth, since they were introduced at roughly a 50% price premium per load. Unit dose products now generate almost 20% of category sales with P&G holding nearly an 80% share of the form. 28% of U.S. households now use the unit dose detergent, up 12 points over the last three years and much more opportunity ahead.
In the U.K. for example, unit dose is already 1/3 of households and Poland is 50%. And we're just getting started in many markets. Just a year ago, we launched three chamber unit dose products in Japan and China with more markets to go. Now we've raised the bar again with our latest unit dose upgrade, a hands-down winner, delivering a 15-point consumer preference advantage versus our previous unit dose offerings. The latest upgrade enables us to deliver excellent cleaning and stain removal in a quick and cold wash, adding incremental value for consumers in both time and money. This is both a performance and a sustainability benefit as the energy used for heating water and the length of the cycle are greatly reduced. It also delivers a step change in performance against malodor, which has emerged as a challenge that is equal importance to consumers as tough stain removal. We're driving single-digit to double-digit growth on the form across each launched country, including the U.S., U.K., France and Poland.
在过去的40年里，P＆G美国织物护理公司已经增长了5倍，在一个增长4倍的市场中增长了500％。市场增长一直是宝洁增长的主要动力，我们推动了领先创新，因此，我们的市场份额增长了约5个百分点。在有意义的优质单位剂量洗涤剂中，Tide PODS和Gain Flings已经推动了美国洗衣粉类别增长的90％以上，因为它们以每个负载大约50％的价格溢价推出。单位剂量产品现在产生近20％的类别销售额，宝洁公司持有近80％的份额。 28％的美国家庭现在使用单位剂量洗涤剂，在过去三年中增加了12个点，并且未来有更多机会。
Fabric enhancers, scent beads, a great example of a superior product and package, packaging that serves the product and communicates the scent benefit with a squeeze release. Distinctive and appealing, Fabric enhancers are the fastest-growing segment in the U.S. Fabric Care category, up high single digits, and scent beads are the fastest-growing form, growing at about 20% rate. P&G scent bead offerings are growing nearly 25% with cumulative value share growth of 10 points in the scent beads segment and 6 points in overall Fabric Care, fabric enhancers over the past four years.
Superior innovation that grows markets and continues to drive strong results over time. And we have tremendous upside here, in the U.S., scent bead household penetration is only 18% and beads are currently used in only 7% of loads. Now we recently launched in China, Thailand and Spain with additional expansion opportunities ahead.
Next, we strive to communicate product and packaging benefits with superior brand messaging. Advertising that makes you think, talk, laugh, cry, smile, act, and of course, buy. Advertising that drives growth for the categories and our brands. This year at the Effie Awards, which recognized the most effective marketing communication, P&G won the top honor of most effective marketer and Tide won the grand Effie Award. Let's watch the winning ad.
That's all of them for now. Superior in-store and online execution also contributes to the growth of categories into our brands. In Fabric Care, we're addressing the needs of e-commerce through ship and own container, executions that enable a direct shipment from P&G to market, P&G to retailers to consumers without the need to manipulate the package, a more appealing execution with less packaging, a more sustainable solution.
Our superior retail execution is being recognized. In the recently published 2018 Global Advantage Report, an independent retailer assessment of manufacturers across seven key performance areas, these are strategic alignment, people, category development, consumer marketing, trade and shopper marketing, supply chain and customer service, P&G ranked number one globally. We earned the highest number of #1 country rankings, 12 in total, including China, Japan, Mexico, Russia and the U.S., and we ranked #1 in all of the seven performance categories.
Omnichannel results were tabulated for the first time this past year. P&G was identified as the leading manufacturer overall with the #1 position in the U.S., China, France and Turkey. We're also recently recognized by Walmart in the U.S. as the supplier of the year in consumables, the first time we've earned this distinction in more than a decade, driven by innovation that grows markets and increases margin and record service levels enabled by our supply chain transformation. We're also named supplier of the year by Walmart in Mexico, Japan and China. We're in similar recognitions in the U.S. at Target, CVS and Family Dollar. Though we appreciate this recognition, but what really matters is retailers improved view of P&G as a partner in joint value creation, which earns stronger distribution, share of shelf, display and feature.
织物增强剂，香味珠，优质产品和包装的典范，包装为产品提供服务，并通过挤压释放传达香味益处。独特且吸引人的是，织物增强剂是美国织物护理类别中增长最快的部分，高达个位数，香味珠是增长最快的形式，增长率约为20％。 P＆G香味珠产品增长近25％，香味珠子部分的累计价值份额增长了10个百分点，而整个Fabric Care，织物增强剂在过去四年中增长了6个百分点。
The last element of superior execution, not certainly the least, is a winning consumer and customer value equation. In both laundry and fabric enhancers, we continue to drive category growth by offering products across price tiers and launching premium innovations that offer consumers new and incremental benefits.
In the U.S, Tide value-add PODS are 25% price premium to base Tide PODS, which are 25% premium to Tide liquids, which are 100% premium to the balance of the market. Close to 40% of our PODS business is in value adds, a big win for retailers and P&G and a superior experience for consumers. Driving regimen from just laundry to the perfect wash, which includes detergent, fabric, liquid fabric enhancer, beads and sheets, doubles the size of the Fabric Care basket, grows the category for retailers and drives growth in our brands.
P&G global Fabric Care is winning with consumers with over 80% of its portfolio on a new standard measured as superior, and results speak for themselves. Globally, the categories growing mid single-digits with P&G driving the growth. Last fiscal year, P&G drove nearly 50% of market growth, well above our value share of 30%. Results are broad based across regions, brands and forms. Last fiscal year, all six regions grew organic sales mid single-digits or higher. Globally, value share increased 30 basis points, including 0.5 point share growth in North America, nearly 1 point in Europe and over 1 point in Asia Pacific.
Now excited to share the next example from a category I worked on a few years ago. Home Care is a category that many believe is commoditized, slow growth, but in fact it continues to deliver fantastic growth for us and our retailers. Over the past two years, Mr. Clean raised the bar across all elements of superiority and returned a sleepy category and a declining brand back to growth.
In fiscal 2019, Mr. Clean drove mid single-digit market growth in the U.S. Surface Care segment and gained over 0.5 point of share. Organic sales grew 20% in fiscal 2019 on top of high single-digit growth in fiscal 2018. Investments across the five vectors of superiority enabled this outstanding turnaround.
Mr. Clean launched product innovations across each form: concentrated liquids, sprays and erasers and added a new eraser sheet form. The Mr. Clean spray upgrade, called Clean Freak utilizes the grease-fighting technology of Dawn to deliver a deep cleaning mist with three times the cleaning power of the leading all-purpose bleach cleaning spray. Clean Freak delivers superior cleaning in many areas of the home, including kitchens and bathrooms and on granite and stainless steel.
Magic Erasers were upgraded to improve durability, widening our superiority advantage. Magic Erasers worked so well that some consumers save them only for big jobs. So we're driving increased category consumption with the launch of Magic Eraser sheets that consumers like to use every day on any size job. These product innovations were launched with superior packaging upgrades.
Clean先生在每种形式上推出了产品创新：浓缩液体，喷雾剂和橡皮擦，并添加了新的橡皮擦表单。 Mr. Clean喷雾升级，名为Clean Freak，利用Dawn的抗油脂技术，提供深度清洁喷雾，其清洁能力是领先的通用漂白清洁喷雾的三倍。 Clean Freak可在家中的许多区域提供卓越的清洁效果，包括厨房和浴室以及花岗岩和不锈钢。
Magic Erasers进行了升级，以提高耐用性，扩大我们的优势。 Magic Erasers工作得很好，有些消费者只为大工作拯救他们。因此，随着消费者喜欢每天在任何规模的工作中使用的Magic Eraser表的推出，我们正在推动增加的类别消费。这些产品创新是通过卓越的包装升级推出的。
Clean Freak sprays have a special trigger that can dispense a small spray or continuous light mist. They can be sprayed upside down to clean hard-to-reach areas and offer sustainability and value through a starter kit and a refill option. The Magic Eraser Sheets launched in a booklet form that enables easy storage and includes educational material inside the front cover to encourage increased consumption.
Mr. Clean focused on increasing household penetration, by educating consumers on the multiple uses of each product. The brand pivoted from advertising the hero Mr. Clean, the man, and traditional jingles to educational in commercial style copy focused on the product, how, when and where to use it. The brand experienced an immediate increase in consumption after the first educational copy was aired. Household penetration improved 30% the first year and has continued to grow. Let's watch two spots showcasing Clean Freak and Magic Eraser.
Beautiful. Mr. Clean also made important retail executional improvements. In club stores, pallet designs and product packaging were transformed to improve in-store display executions. Mr. Clean erasers moved from tub containers to large, flat boxes, creating a large marketing wall for the brand where executed sales have increased by 20%.
In the mass channel, Mr. Clean Magic Erasers were moved to gravity drop boxes, which declutter shelves and enable on-shelf marketing. Where executed, the 3D packaging gravity boxes contributed to nearly a 30% increase in purchases.
Now by educating the consumer in the multiple uses of Magic Erasers and Sheets, the value equation, which we framed from our purchasing a sponge through purchasing a product that can clean virtually anything, the Magic Eraser Sheets are driving category growth via trade-up and the consumer value equation has improved as she uses a single-use sheet for about one-third the price of an eraser, but a lot more of them.
Clean Freak has grown the all-purpose cleaning spray segment, up 6% post-launch by offering a superior product and superior packaging, communicated in a simple to use format. Consumers understand the value and love the sustainable refill model.
We will continue to make progress extending our margin of advantage and increasing the quality of execution, which will require ongoing investment. The need for this investment -- the need to offset the macro cost headwinds that Jon talked about earlier and the need to drive balance, top and bottom line growth, including margin expansion, underscores the importance of productivity. We're driving cost savings and efficiency improvements in all facets of our business, now past the midpoint of our second five-year, $10 billion productivity program.
Through our productivity efforts, P&G has maintained and built its status as a highly profitable company. Before tax, operating margins were among the highest in the industry, behind only Reckitt and Colgate, whose margins reflects their concentrations in Health Care. We have significant below the line advantages, operating with one of the lowest interest expense percentages and one of the lowest tax rates, putting us near the top of the industry in after-tax margins, already highly profitable and aggressively driving more savings.
Clean Freak喷雾剂具有特殊的触发器，可以分配小喷雾或连续的轻雾。它们可以倒置喷洒，以清洁难以触及的区域，并通过入门套件和补充选项提供可持续性和价值。 Magic Eraser Sheets以小册子的形式推出，可以轻松存放，并在封面内包含教育材料，以鼓励增加消费。
Clean先生通过教育消费者了解每种产品的多种用途，专注于提高家庭渗透率。该品牌从宣传英雄先生清洁，男人和传统的歌曲转向商业风格的教育复制，专注于产品，如何，何时以及在何处使用它。第一个教育版本播出后，该品牌的消费量立即增加。家庭普及率第一年提高了30％，并且持续增长。让我们看两个展示Clean Freak和Magic Eraser的地方。
美丽。 Clean先生也做了重要的零售改进。在俱乐部商店中，托盘设计和产品包装被改造以改善店内展示执行。 Clean rubrs先生从浴缸容器转移到大型扁平盒子，为品牌创造了一个巨大的营销墙，执行销售额增加了20％。
在大众渠道中，Clean Magic Erasers先生被转移到重力下降箱，这些箱子可以拆卸货架并实现货架营销。在执行时，3D包装重力箱的购买量增加了近30％。
现在通过教育消费者使用Magic Erasers和Sheets的多种用途，我们通过购买可以清洁任何东西的产品购买海绵来构建价值等式，Magic Eraser Sheets通过交易推动类别增长消费者价值方程式得到了改善，因为她使用一次性纸张的价格约为橡皮擦价格的三分之一，但更多的是这样。
我们将继续取得进展，扩大我们的优势，提高执行质量，这将需要持续的投资。需要进行这项投资 - 需要抵消乔恩先前谈到的宏观成本逆风以及推动平衡，上下线增长（包括利润率扩张）的必要性，这强调了生产力的重要性。我们正在推动我们业务各个方面的成本节约和效率提升，现已超过我们第二个五年100亿美元的生产力计划的中点。
Superiority and productivity are critical but are insufficient to keep us ahead in a world with constantly changing retail environment, quickly evolving consumer needs, media ecosystem transformation, revolutionary changes in technology. We must and are leading the constructive disruption of our industry across all areas of the value chain. Each of these drivers are required to win in a highly dynamic and competitive environment we face today; superiority, productivity and constructive disruption.
Next, P&G Ventures is an internal start-up studio that works with entrepreneurs to create new brands, technologies and business models. Brands that have been created within P&G Ventures that are in the learning market phases include Zevo, a safe and effective way to control insects in your home; Opté, a precision skin care technology that digitally scans skin and analyzes complexion to cover imperfections; Metaderm, a proprietary botanical extract skincare product that helps people manage their chronic skin conditions; and Pepper & Wits, a treatment product that helps women with symptoms of menopause.
We're also leading disruption of our retail execution behind the SK-II, Future X Smart Store. This store offers an AI supported shopping experience with personalized recommendations based on smart scans of a person's skin, product browsing on virtual shelves and shopping through the wave of a hand. It's the first augmented reality retail environment, which merges physical and digital technology to give the shoppers exactly the skincare regimen needed in a new smart packaging that features a companion app for personalized skincare every day. We're reinventing brand building, moving from wasteful mass marketing to mass one-to-one brand building, fueled by data and technology with a propensity focus.
In the U.S, we built a data and analytics learning lab based on anonymous media audience data and retail purchase information. We're moving from generic demographic targets, like women 18 to 49 years old, to more than 350 precise, smart audiences, like first-time moms, millennial young professionals, first-time washing machine owners and many more, to reach the right people at the right place at the right time.
The Secret brand is disrupting how we communicate. The brand no longer has an agency of record. The brand team has become its own agency, bringing nearly all advertising creation and media planning in-house.
Let's take a look at some recent spots shot locally in Cincinnati by P&G employees with primarily P&G talent and their families.
Secret's approach is disrupting the cost, speed and agility of consumer communication. The new ads are being created in as little as a one-tenth -- with as little as one-tenth of the cost of a traditional execution. The time from idea to execution has significantly reduced, producing content in under a month versus average production time of 3 to 5 months. These benefits, combined with in-house media planning, give the brand complete control and flexibility to react in real time to current events and consumer response to our ads. There's a tremendous opportunity in this area across brands ahead of us.
接下来，P＆G Ventures是一家内部创业工作室，与企业家合作创建新的品牌，技术和商业模式。在P＆G Ventures中创建的处于学习市场阶段的品牌包括Zevo，一种安全有效的方法来控制家中的昆虫; Opté，一种精确的皮肤护理技术，可对皮肤进行数字扫描并分析肤色以掩盖瑕疵; Metaderm，一种专利的植物提取物护肤产品，可帮助人们控制慢性皮肤病;和Pepper＆Wits，一种帮助女性更年期症状的治疗产品。
我们还在推动SK-II，Future X Smart Store背后的零售执行中断。这家商店提供人工智能支持的购物体验，基于对人的皮肤进行智能扫描，在虚拟货架上浏览产品和通过手势购物提供个性化推荐。这是第一个增强现实零售环境，融合了物理和数字技术，为购物者提供了一个新的智能包装所需的护肤方案，每天都有一个用于个性化护肤的配套应用程序。我们正在重塑品牌建设，从浪费的大规模营销转向大规模的一对一品牌建设，以数据和技术为重点推动。
Secret的方法正在破坏消费者沟通的成本，速度和敏捷性。新广告的创建时间只有十分之一 - 仅为传统执行成本的十分之一。从构思到执行的时间显着减少，产生的内容在一个月以内，而平均生产时间为3到5个月。这些优势与内部媒体规划相结合，为品牌提供了完全的控制和灵活性，可以实时响应当前事件和消费者对我们广告的响应。我们面前的品牌在这个领域有巨大的机会。
The Secret brand is not just disrupting how we communicate, but the use in its voice as a force for good and a force for growth, addressing gender equality. Spring boarding from the success of the All Strength, No Sweat campaign and our initial partnership with the U.S. Women's National Soccer Team, Secret recently donated over $0.5 million to the U.S. Women's Players Association to help raise awareness of the gender pay gap women face and do our part to close that gap. Since the donation, the U.S. Secret brand growth has accelerated from low single-digit to mid-single digit growth.
We're making organizational structure and cultural changes to better position us to win. We're taking steps to simplify the organization, focus effort, clarify responsibilities and increase accountability. We're supplementing internal talent development with experienced external hiring, and we're improving category dedication and mastery.
We're strengthening compensation and incentive plans. We're moving to a new organizational structure designed to dematrix the company and provide even greater clarity on responsibilities and reporting lines to focus and strengthen leadership accountability.
We're significantly reducing the level of corporate resources. We've moved from about 60% of corporate roles to the business units. About 60% of corporate roles have moved into the business units and markets. The benefit is the creation of a more focused, agile and accountable organization operating at a lower cost, focused on winning through superiority, fueled by productivity, operating at the speed of the market.
On July 1, we began to operate as fixed industry based sector business units, or SBUs, and manage our 10 product categories through these 6 SBUs. The SBUs have profit and loss responsibility for the largest markets – the focused markets, which represent about 80% of sales and 90% profits. The SBU CEOs are focused on winning and driving value-creation opportunities in these markets.
We continue to invest though also in the emerging enterprise markets, which have very attractive market growth rates, typically 5% to 6% right now. Organizational structures there are beginning to optimize and accelerate growth, top and bottom line, in dynamic macro environments.
Now I hope it's evident, we're disrupting P&G. The choices we've made to focus and strengthen our portfolio in daily-use categories where performance drives brand choice to establish and extend the superiority of our brands to make productivity as integral to our culture as innovation and to lead constructive disruption across the value chain and to improve organizational focus, agility and accountability are working.
These are not independent strategies. They reinforce and build on each other. They position us well within the industry to deal with near-term challenges such as macro headwinds, trade transformation and anticipated competitive response. But they're the foundation for stronger balanced growth and value creation of the short, mid and long term.
秘密品牌不仅扰乱了我们的沟通方式，而且还利用其声音作为促进善的力量和增长的力量，解决性别平等问题。春季登上了All Strength，No Sweat活动的成功以及我们与美国女子国家足球队的初步合作关系，Secret最近向美国女子运动员协会捐赠了超过50万美元，以帮助提高对女性所面临的性别薪酬差距的认识。我们要缩小差距。自捐赠以来，美国秘密品牌的增长已经从低单位数增长到中位数增长。
7月1日，我们开始作为固定行业的行业业务部门（SBU）运营，并通过这6个SBU管理我们的10个产品类别。 SBU对最大的市场 - 重点市场负有盈亏责任，这些市场占销售额的80％和90％的利润。 SBU首席执行官致力于在这些市场中赢得并推动价值创造机会。
With that, Jon and I are happy to answer any questions. Open it up.
Lauren, do you want to start?
I would love to. I did not expect to cry from the Secret ad, but...
That's a good thing.
Surprise of the day for me.
And laugh for the Tide ad and buy for Mr. Clean ad.
So wanted to first -- I actually have 2 questions, if we can get them in, but the first was around the operating model changes so the focused market versus the enterprise market. So it was about 9 months ago at the Investor Day, when you introduced this concept at least to The Street.
And I was wondering if there were any examples yet where you could point out what enterprise markets mean, the way of managing these markets differently, because I think it's something a lot of us struggle to really understand back in November?
所以首先想要 - 我实际上有两个问题，如果我们可以进入，但第一个是围绕运营模式的变化，所以焦点市场与企业市场。 因此，大约9个月前的投资者日，至少你向The Street介绍了这个概念。
Perfect. I'll give a comment. I think Jon illustrated it because he currently leads the enterprise markets, but what happened this weekend, Argentina, capital controls put on. And normally, in the past, we would have all of our 10 GBU President’s figuring out what their plan was. They'd be calling our General Manager in Argentina to work the plan, they didn't do that.
The 6 SBUs are responsible for the focused markets. They turned to one individual and said, that's the plan and Jon, as the leader of the enterprise market, was on the phone with the Argentina team and we have a plan. And the enterprise markets will bring that to life -- or in Argentina, they'll bring it to life and the GBUs didn't waste time on that because 10 people from faraway lands aren't going to come with the best solution. You can talk with them during the weekend.
完善。 我会发表评论。 我认为乔恩说明了这一点，因为他目前领导着企业市场，但本周末发生的事情，阿根廷，资本管制实施了。 通常，在过去，我们会让所有10 GBU主席确定他们的计划是什么。 他们会打电话给我们在阿根廷的总经理来制定计划，他们没有这样做。
6个SBU负责重点市场。 他们转向一个人说，这就是计划，Jon作为企业市场的领导者，正在与阿根廷团队通电话，我们有一个计划。 企业市场将把它带入生活 - 或者在阿根廷，它们将把它带入生活，GBU不会浪费时间，因为来自遥远的土地的10个人不会得到最好的解决方案。 你可以在周末和他们交谈。
Well, it's something we have an answer in 2 days. It would have taken us 2 months previously. And as David said, the bigger advantage is maintaining focus on the U.S., China the other big focused markets. So that's -- that -- it's a small example, but multiplied across all the difficulties that exist in those markets. It's a big, big improvement in terms of capacity.
嗯，这是我们在2天内得到答案的东西。 这将花费我们2个月的时间。 正如大卫所说，更大的优势是将重点放在美国，中国是另一个重点突出的市场。 这就是 - 这只是一个小例子，但却成倍增加了这些市场中存在的所有困难。 在容量方面，这是一个很大的改进。
And you flip that with the fact that they're all over U.S., China, making sure we win in the big countries in Western Europe and dealing with the dynamics that are occurring there and you see the growth rates improving. And our view is that we can grow both faster because we're more effectively used in leadership time focused on winning with consumers in each market on each category.
Great. Can I go another one?
It's up to you.
You've got the mic.
So I think the last time that P&G put up this type of growth that you're now delivering or have just delivered was before the great recession. And so one thing I've been asked a lot about and have thought about is, what if this is 2006 and not just in terms of a recession coming because that's not what I was going to you to prognosticate on, but the consumer's appetite for newness, the consumer's appetite for trade-up, for innovation, what is that -- a big piece of what's driving the success right now? And if the macro environment changes in the next 12 months, where does that leave P&G?
因此，我认为宝洁最后一次提出您正在实施或刚刚交付的这种增长方式是在经济大衰退之前。 所以有一件事我被问过很多关于并且已经考虑过的事情，如果这是2006年而不仅仅是因为经济衰退而来，因为这不是我要求你预测的，而是消费者的胃口。 新奇，消费者对贸易的渴望，对创新的兴趣，是什么 - 现在正在推动成功的重要因素是什么？ 如果宏观环境在未来12个月内发生变化，那么宝洁公司会在哪里发生变化？
If anything, I think it leaves us in a better place in many ways because the focus is on winning in each market, in each category with category growing innovation, and we broadened our ladders in most categories on the price points we serve. But at that price point, we want to have superior offerings with product to package, go-to-market capability, communication, consumer and retail value.
Through that focus works in either, arguably, we're even better focused if it's tough lands because the consumers got to make choices on what really makes a difference in his or her life. In a story that I've told before, even in low-income markets, there is going to be a trade down.
Well, I remember a Russian consumer once that was buying Ariel, which is our high-end laundry detergent in Russia and we have a lower end, a less expensive one, and when asked why do you buy Ariel?
She said I can't afford the other brands because I need something that works all the time. So it is very much about -- when you have a limited amount of money, you have to buy or you want buy something that really works and you have confidence in. So the bigger the advantage in the equity ownership, to me, I think we're well placed.
她说我买不起其他品牌因为我需要一直有效的东西。所以它非常重要 - 当你的钱数量有限时，你必须购买或者你想买一些真正有用的东西而且你有信心。所以股权所有权的优势越大，对我而言，我认为我们很好。
So we got to go to breakout. So thank you so much for being here, and we'll go over to breakout.
Thanks. Okay, thank you.
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