寶潔 (PG) 2024 Q1 法說會逐字稿

Good morning, and welcome to Procter & Gamble's quarter-end conference call. Today's event is being recorded for replay.

早安，歡迎參加寶潔公司的季度末電話會議。今天的事件正在錄製以供重播。

This 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.

這次討論將包括一些前瞻性陳述。如果您參考寶潔公司最新的 10-K、10-Q 和 8-K 報告，您將看到可能導致公司實際結果與這些預測有重大差異的因素的討論。

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.

根據 G 條例的要求，寶潔公司需要讓您意識到，在討論過程中，公司將多次提及非 GAAP 和其他財務指標。寶潔公司認為，這些指標為投資者提供了有關基本業務趨勢的有用視角，並在其投資者關係網站 www.pginvestor.com 上發布了非 GAAP 財務指標的全面對帳。

Now I will turn the call over to P&G's Chief Financial Officer, Andre Schulten.

現在我將把電話轉交給寶潔公司財務長安德烈‧舒爾滕 (Andre Schulten)。

Good morning, everyone. Joining me on the call today is John Chevalier, Senior Vice President, Investor Relations. This fiscal year, Jon Moeller, Chairman, President and CEO, will join the mid-year and year-end calls and I'll be leading the Q1 and Q3 calls.

大家，早安。今天和我一起參加電話會議的是投資人關係資深副總裁 John Chevalier。本財年，董事長、總裁兼執行長 Jon Moeller 將參加年中和年終電話會議，我將主持第一季和第三季的電話會議。

Execution of our integrated strategy drove strong results in the July to September quarter, broad-based organic sales growth across categories and regions, global aggregate market share growth, strong productivity savings, enabling increased investment in superiority of our brands while also delivering very strong earnings growth. These strong first quarter results put us on track to deliver towards the higher end of our fiscal year guidance ranges for organic sales growth and core earnings per share and continued strong cash productivity and cash return to shareowners.

我們的綜合策略的執行推動了7 月至9 月季度的強勁業績，跨類別和地區的廣泛有機銷售增長，全球總市場份額增長，強勁的生產力節省，增加了對我們品牌優勢的投資，同時也帶來了非常強勁的收益生長。這些強勁的第一季業績使我們有望實現有機銷售成長和每股核心收益以及持續強勁的現金生產力和股東現金回報的財政年度指導範圍的高端。

Now moving to first quarter numbers. Organic sales grew 7%. Pricing added 7 points to sales growth and mix contributed 1 point. Volume rounded down to a decline of 1 point with overall modest volume growth outside Greater China. Top line growth was broad-based across business units with each of our 10 product categories growing organic sales. Home Care grew low-teens. Personal Health Care was up double digits. Feminine Care, Oral Care, Fabric Care, Hair Care and Grooming each grew high single digits. Baby Care and Family Care were up mid-singles. Skin and Personal Care grew low singles.

現在轉向第一季的數據。有機銷售額成長 7%。定價為銷售成長貢獻了 7 個百分點，而組合貢獻了 1 個百分點。成交量下降 1 個百分點，大中華區以外的成交量整體溫和成長。各個業務部門的收入成長均十分廣泛，我們的 10 個產品類別中的每一個產品類別的有機銷售額都在成長。家庭護理業務成長到十幾歲。個人醫療保健成長了兩位數。女性護理、口腔護理、織物護理、頭髮護理和美容均實現高個位數成長。嬰兒護理和家庭護理在單打中排名上升。皮膚和個人護理單品增長較低。

Growth was also broad-based across geographies with 5 of 7 regions growing organic sales. Focus Markets grew 6% for the quarter. Organic sales in the U.S. were up 7%. And Europe Focus Markets were up 15%. Greater China organic sales were down 6% versus prior year. Underlying market growth is soft and choppy as consumer confidence remains weak. SK-II was down low-teens in Greater China due to soft market conditions and a temporary reduction in social retail merchandising.

各地區的成長也很廣泛，7 個地區中有 5 個地區的有機銷售額出現成長。 Focus Markets 本季成長 6%。美國的有機銷售額成長了 7%。歐洲焦點市場上漲 15%。大中華區有機銷售額較前一年下降 6%。由於消費者信心依然疲軟，基礎市場成長疲軟且波動。由於市場狀況疲軟和社群零售銷售暫時減少，SK-II 在大中華區的股價下跌至十位數以下。

Enterprise Markets were up 13% with Latin America up 19% and Europe Enterprise Markets up 15%. Shipment volume in the U.S. grew 3% again this quarter, and we returned to volume growth in Europe Focus Markets. Mexico, Brazil and India, some of our largest Enterprise Markets, continue to deliver solid volume growth. These gains largely offset volume declines in the Greater China, Asia-Pacific and European enterprise regions, primarily driven by underlying market contraction.

企業市場成長 13%，其中拉丁美洲成長 19%，歐洲企業市場成長 15%。本季美國的出貨量再次成長 3%，歐洲重點市場的出貨量也恢復成長。墨西哥、巴西和印度是我們最大的一些企業市場，銷售量持續強勁成長。這些成長在很大程度上抵消了大中華區、亞太地區和歐洲企業地區銷售下降的影響，而銷售下降主要是由潛在市場收縮造成的。

Global aggregate value share was up 40 basis points versus prior year with 32 of our top 50 category country combinations holding or growing share. In the U.S., all-outlet value share was up 50 basis points versus prior year with 7 of 10 categories holding or growing value share in the quarter. U.S. volume share was up 60 basis points, reflecting 3% volume growth. Value share in European Focus Markets was up 40 basis points over the past 3 months.

全球總價值份額比上年增長了 40 個基點，其中 50 個類別國家組合中有 32 個持有或不斷增長份額。在美國，所有商店的價值份額比去年同期增長了 50 個基點，本季 10 個類別中有 7 個類別維持或成長了價值份額。美國銷售份額上升 60 個基點，銷量成長 3%。過去 3 個月，歐洲焦點市場的價值份額上升了 40 個基點。

Moving to the bottom line. Core earnings per share were $1.83, up 17% versus prior year. On a currency-neutral basis, core EPS increased 21%. Core operating margin increased 240 basis points as 460 basis points of gross margin expansion were partially offset by increased marketing investments, wage and benefit inflation and foreign exchange impacts on SG&A. Currency-neutral operating margin increased 340 basis points. Productivity improvements were a 210 basis point help to the quarter.

移動到底線。每股核心收益為 1.83 美元，比上年增長 17%。在貨幣中性的基礎上，核心每股盈餘成長了 21%。核心營業利潤率成長了 240 個基點，毛利率成長 460 個基點，但被行銷投資增加、薪資和福利通膨以及外匯對 SG&A 的影響部分抵銷。貨幣中性營業利潤率增加 340 個基點。本季生產力提高了 210 個基點。

Adjusted free cash flow productivity was 97%. We returned $3.8 billion of cash to shareowners, approximately $2.3 billion in dividends and $1.5 billion in share repurchase. In summary, against what continues to be a challenging and volatile operating environment, a very good start to the fiscal year across top line, bottom line and cash.

調整後自由現金流生產力為 97%。我們向股東返還了 38 億美元現金、約 23 億美元股利和 15 億美元股票回購。總之，在仍充滿挑戰和動盪的經營環境中，本財年在營收、利潤和現金方面都有一個良好的開端。

Our team continues to operate with excellence, executing the integrated strategy that has enabled strong results over the past 5 years. And that is the foundation for balanced growth and value creation, a portfolio of daily-use products, many providing cleaning, health and hygiene benefits in categories where performance plays a significant role in brand choice.

我們的團隊繼續卓越運營，執行綜合策略，在過去 5 年中取得了強勁的業績。這是平衡成長和價值創造的基礎，這是一個日常使用產品組合，其中許多產品在性能在品牌選擇中發揮重要作用的類別中提供清潔、健康和衛生益處。

Ongoing commitment to and investment in irresistible superiority across the five vectors of product, package, brand communication, retail execution and value across each price tier we compete. We are again raising bar on our superiority standards to reflect the dynamic nature of this strategy.

我們不斷致力於在產品、包裝、品牌傳播、零售執行和我們競爭的每個價格層的價值五個方面保持不可抗拒的優勢並進行投資。我們再次提高了我們的優勢標準，以反映此策略的動態性質。

Productivity improvement in all areas of our operations to fund investments in superiority offset cost and currency challenges, expand margins and deliver strong cash generation. An approach of constructive disruption, a willingness to change, adapt and create new trends and technologies that will shape our industry for the future, especially important in the volatile environment we're in.

我們業務所有領域的生產力提高，為優勢投資提供資金，抵消成本和貨幣挑戰，擴大利潤並實現強勁的現金產生。一種建設性顛覆的方法，願意改變、適應和創造新趨勢和技術，這將塑造我們產業的未來，在我們所處的動盪環境中尤其重要。

Finally, an organization that is more empowered, agile and accountable. We continue to improve the execution of the integrated strategy with four focus areas: Supply Chain 3.0, digital acumen, environmental sustainability and the employee value equation. These are not new or separate strategies. They are necessary elements in continuing to build superiority, reduce cost to enable investment and value creation and to further strengthen our organization.

最後，一個更強大、敏捷和負責任的組織。我們持續改善綜合策略的執行，重點在於四個領域：供應鏈 3.0、數位敏銳性、環境永續性和員工價值方程式。這些並不是新的或獨立的策略。它們是繼續建立優勢、降低成本以實現投資和價值創造以及進一步加強我們的組織的必要要素。

Our strategic choices on portfolio, superiority, productivity, constructive disruption and organization reinforce and build on each other. When executed well, they grow markets, which in turn grow share, sales and profit. We continue to believe that the best path forward to deliver sustainable top and bottom line growth is to double down on this integrated strategy, starting with a commitment to deliver irresistibly superior propositions to consumers and retail partners, fueled by productivity.

我們在投資組合、優勢、生產力、建設性顛覆和組織方面的策略選擇相互加強、相互促進。如果執行得當，他們會擴大市場，進而增加份額、銷售和利潤。我們仍然相信，實現可持續的營收和利潤成長的最佳途徑是加倍實施這項綜合策略，首先承諾在生產力的推動下，向消費者和零售合作夥伴提供令人難以抗拒的卓越主張。

Moving to guidance. As I mentioned, we expect the environment around us to continue to be volatile and challenging from input costs to currencies to consumer and geopolitical dynamics. We attempt to reflect these realities in our guidance ranges. Based on current spot prices, we estimate commodities will be a tailwind of around $800 million after tax in fiscal '24. This is consistent with the outlook we provided in July.

轉向指導。正如我所提到的，我們預計我們周圍的環境將繼續波動並充滿挑戰，從貨幣的投入成本到消費者和地緣政治動態。我們試圖在我們的指導範圍內反映這些現實。根據當前現貨價格，我們估計大宗商品將在 24 財年稅後帶來約 8 億美元的推動力。這與我們 7 月提供的前景一致。

However, within this estimate, there have been several moving parts. We've seen incremental relief on some commodities like pulp, which have been offset by higher costs in other commodities, such as fuel. Foreign exchange rates have moved sharply against us. And we now expect a headwind of approximately $1 billion after tax, an incremental $600 million impact since our initial guidance for the year.

然而，在這個估計範圍內，有幾個變化的部分。我們看到紙漿等一些商品的價格逐步下降，但燃料等其他商品的成本上漲抵消了這種影響。外匯匯率對我們來說急劇波動。我們現在預計稅後逆風約為 10 億美元，自我們今年最初的指導以來增加了 6 億美元的影響。

In addition to these impacts, we are also facing higher inflation in wages and benefits. And we expect higher year-on-year net interest expense of approximately $200 million after tax. As we are just 1 quarter to the fiscal year, we are maintaining our guidance ranges for organic sales, core EPS growth, cash productivity and cash return to shareowners with each solidly on track after a very strong first quarter.

除了這些影響之外，我們還面臨著薪資和福利的更高通膨。我們預計稅後淨利息支出將年增約 2 億美元。由於本財年僅剩一個季度，我們將維持有機銷售、核心每股收益成長、現金生產率和股東現金回報的指導範圍，在經歷了非常強勁的第一季後，每項指標均已步入正軌。

Guidance for organic sales is growth of 4% to 5% for the fiscal year. The range includes a normalization in underlying market growth rates that is likely to occur through calendar year '24 as the market laps the last wave of cost recovery pricing and as market volumes return to growth. For P&G, we expect 3 to 4 points less pricing benefit in each of the next 2 quarters compared to our first quarter results.

有機銷售額的指導方針是本財年增長 4% 至 5%。此範圍包括基礎市場成長率的正常化，隨著市場經歷最後一波成本回收定價以及市場量恢復成長，這種情況可能會在 24 日曆年發生。對於寶潔公司，我們預計未來 2 個季度的定價收益將比第一季的業績減少 3 到 4 個百分點。

On the bottom line, our outlook for fiscal '24 core earnings per share is 6% to 9% growth versus last fiscal year. We're holding the range despite the incremental $600 million after-tax headwind from foreign exchange. With now a 7 point EPS impact from FX, this outlook translates to 13% to 16% core EPS growth on a constant currency basis.

總而言之，我們對 24 財年每股核心收益的展望是與上一財年相比成長 6% 至 9%。儘管外匯帶來的稅後逆風增加了 6 億美元，但我們仍維持這一區間。目前，外匯對每股盈餘有 7 個百分點的影響，這一前景意味著在固定匯率基礎上核心每股盈餘將成長 13% 至 16%。

We continue to forecast adjusted free cash flow productivity of 90%. We expect to pay more than $9 billion in dividends and to repurchase $5 billion to $6 billion in common stock. Combined, we plan to return $14 billion to $15 billion of cash to shareowners this fiscal year.

我們繼續預測調整後的自由現金流生產力為 90%。我們預計將支付超過 90 億美元的股息，並回購 50 億至 60 億美元的普通股。合併後，我們計劃在本財年向股東返還 140 億至 150 億美元現金。

This outlook is based on current market growth rate estimates, commodity prices and foreign exchange rates. Significant additional currency weakness, commodity cost increases, geopolitical disruptions or major production stoppages are not anticipated within the guidance ranges.

這項展望是基於當前市場成長率估計、大宗商品價格和外匯匯率。預計貨幣大幅疲軟、大宗商品成本上漲、地緣政治幹擾或重大生產停頓不會出現在指導範圍內。

As you consider the cadence of earnings for the year, keep in mind that the back half of the year will see less pricing benefit as we progressively annualize prior year increases. We should also see less commodity benefit as we move through the year. Labor inflation continues throughout the supply chain and in our cost. FX headwinds will increase versus quarter 1. Also, with a strong start to the year, we'll be reinvesting to further strengthen our plans and to maintain strong momentum.

當您考慮今年的獲利節奏時，請記住，隨著我們逐步將上一年的成長按年化，今年下半年的定價優勢將會減少。隨著這一年的推移，我們也應該看到大宗商品的收益減少。勞動力通膨在整個供應鏈和我們的成本中持續存在。與第一季相比，外匯阻力將會加大。此外，隨著今年的強勁開局，我們將進行再投資，以進一步加強我們的計劃並保持強勁的勢頭。

Finally, we'll be closely watching the health of the China market and the balance of regions. Energy costs are rising as we head into fall and winter. Household saving levels have reduced, especially in Europe. Slower economic growth, higher energy costs and higher interest rates for longer have an impact on consumer confidence.

最後，我們將密切關注中國市場的健康狀況和區域平衡。隨著秋季和冬季的到來，能源成本正在上升。家庭儲蓄水準有所下降，尤其是在歐洲。經濟成長放緩、能源成本上升以及長期利率上升都會對消費者信心產生影響。

To conclude, while we expect volatile consumer and macro dynamics to continue, we remain confident in our strategy and the results that it delivers. We are focused on driving growth in our categories. And we are committed to delivering balanced top and bottom line growth and value creation for our shareowners.

總而言之，雖然我們預期消費者和宏觀動態將繼續波動，但我們對我們的策略及其帶來的結果仍然充滿信心。我們專注於推動我們類別的成長。我們致力於為股東提供平衡的營收和利潤成長以及價值創造。

With that, we'll be happy to take your questions.

這樣，我們將很樂意回答您的問題。

(Operator Instructions) Your first question comes from Steve Powers of Deutsche Bank.

（操作員說明）您的第一個問題來自德意志銀行的史蒂夫鮑爾斯（Steve Powers）。

I guess, just picking up on your comments on organic growth over the balance of the year, maybe you could talk a little bit more about how you're thinking about the progression of price versus volume versus mix over the remainder of the year. And then I'm curious as to whether your approach to balancing those various drivers differs at all between your focus markets, particularly the U.S. and the Enterprise Markets, where you're experiencing more of the currency headwinds.

我想，只要了解您對今年剩餘時間有機增長的評論，也許您可以更多地談談您如何考慮今年剩餘時間價格、數量和組合的進展。然後我很好奇你們平衡這些不同驅動因素的方法在你們的重點市場（特別是美國和企業市場）之間是否有根本不同，在企業市場上你們遇到了更多的貨幣逆風。

As we said in the prepared remarks, we expect the market to return to a lower, more sustainable growth rate, more in line with historical growth at around 4%. That will have a stronger contribution on the volume side. We would expect that to be around 2% -- 1% to 2% of pricing and maybe 1 point of mix impact. That will occur over the next few quarters. And as always, P&G is intending to grow ahead of the market.

正如我們在準備好的演講中所說，我們預期市場將恢復到更低、更永續的成長率，更符合 4% 左右的歷史成長率。這將對銷售方面產生更大的貢獻。我們預計這將佔定價的 2% 至 1% 至 2% 左右，也許還有 1 個點的混合影響。這將在接下來的幾個季度發生。像往常一樣，寶潔公司打算領先市場成長。

So really, our expectation for the year is to be slightly ahead of the market in terms of volume and slightly ahead in terms of price. We continue to believe that we can price with strong innovation. And we have gained even more confidence over the past 2 years that our strategy of pricing with innovation to drive superiority and create value for the consumer is working.

因此，實際上，我們對今年的預期是在數量方面略領先市場，在價格方面略領先市場。我們仍然相信，我們可以透過強大的創新來定價。在過去的兩年裡，我們更加確信我們的創新定價策略正在發揮作用，以推動優勢並為消費者創造價值。

And so we fully expect to return to that pattern. And again, pricing has been a core component of our growth for 18 out of the last 19 years, so we expect that to continue. Specifically, I think the pricing will start to lap in quarter 2. So you will see probably the price contribution drop to -- by 3 to 4 points in quarter 2. And that was expected. And we then sequentially expect volumes to pick up and offset part of that but do expect a lower overall market growth rate for the balance of the year.

因此，我們完全期望回到這種模式。再說一次，在過去 19 年中，有 18 年定價一直是我們成長的核心組成部分，因此我們預計這種情況將持續下去。具體來說，我認為定價將在第二季開始下降。因此，您可能會看到價格貢獻在第二季下降 3 到 4 個百分點。這是預期的。然後，我們預計銷售量將會回升並抵消部分銷售量，但預計今年剩餘時間的整體市場成長率將會較低。

To your second part of the question, Enterprise Markets versus focus markets, I think the only differential would be foreign exchange. And we'll continue to price for foreign exchange. We've done that very successfully across the world. Turkey is a major example, where we've been able to price for the significant devaluation of the Turkish lira.

對於問題的第二部分，企業市場與焦點市場，我認為唯一的區別是外匯。我們將繼續對外匯定價。我們在世界各地都非常成功地做到了這一點。土耳其就是一個重要的例子，我們能夠為土耳其里拉的大幅貶值定價。

But we are able to grow share, grow sales, grow profit. We'll continue that model. Outside of that, we'll continue to do and drive the same business model we're driving in focus markets, innovate, drive superiority, price, grow markets and thereby grow sales, profit and share.

但我們能夠增加份額、增加銷售、增加利潤。我們將繼續這種模式。除此之外，我們將繼續採用並推動我們在重點市場推動的相同業務模式、創新、推動優勢、價格、擴大市場，從而增加銷售額、利潤和份額。

Next question comes from Dara Mohsenian of Morgan Stanley.

下一個問題來自摩根士丹利的達拉·莫森尼安。

So just to follow up on that, can you characterize what you're seeing competitively in terms of the pricing environment? Obviously, it will be different by geography and product category. But in general, what type of behavior are you seeing from your competitors? And any thoughts around retailer pushback as commodities have turned favorable year-over-year?

那麼，為了跟進這一點，您能否描述一下您在定價環境方面所看到的競爭？顯然，它會因地理位置和產品類別而有所不同。但總的來說，您從競爭對手那裡看到了哪些類型的行為？隨著大宗商品逐年變得有利，零售商對零售商的抵制有何想法？

And just then in terms of volume growth, it sounds like we should expect a return to volume growth. Just what you think your level of visibility is around that and how much comfort you have in ultimately returning to volume growth as pricing drops off?

就在那時，就銷售成長而言，聽起來我們應該期待銷量成長的回歸。您認為您的可見度是多少？隨著價格下降，您對最終恢復銷售成長有多大信心？

When you look at the total market, it's very consistent with previous periods. You still see average market growth of around 6% to 7%. And you see still the price component being a significant driver. Volumes are stabilizing at a global level, minus 1 point to flat, depending on the geography you look at, the only exception being Greater China. So the price component and the price rollover is consistent period-over-period. So no differentiation there from a competitive standpoint, at least not that we see it.

當你觀察整個市場時，你會發現它與之前的時期非常一致。您仍然會看到平均市場成長率約為 6% 至 7%。您會看到價格因素仍然是一個重要的驅動因素。全球成交量趨於穩定，負 1 個百分點至持平，取決於您所關注的地理位置，唯一的例外是大中華區。因此，價格成分和價格展期在不同時期是一致的。因此，從競爭的角度來看，這並沒有什麼區別，至少我們沒有看到這一點。

Promotion continues to be -- promotion levels and other indicator continue to be below pre-COVID levels. In the U.S., for example, volumes sold on deal is now at about 29%. Overall promotion levels still [indexed 80] versus pre COVID. In Europe, we also see promotions still down and actually sequentially decreasing. Now it's a different dynamic by market obviously but only aggregate up. It looks like over the past few quarters, promotion activity is actually still decreasing.

促銷活動仍在繼續——促銷水平和其他指標繼續低於新冠疫情前的水平。例如，在美國，交易銷售量目前約為 29%。與新冠疫情爆發前相比，整體促銷水準仍[指數為 80]。在歐洲，我們也看到促銷活動仍在減少，而且實際上還在持續減少。現在，市場的動態顯然有所不同，但只是總結而已。看起來過去幾個季度，促銷活動實際上仍在減少。

And that makes sense. If you look at the relatively little or small help to commodity costs, we see about $800 million after-tax help offset by about $1 billion of foreign exchange. And recall, we're coming from 2 years, which combined have an impact of $7 billion of headwinds. So I think everybody is still recovering, so the current pricing dynamic makes sense.

這是有道理的。如果你看看對大宗商品成本的相對較小或較小的幫助，我們會發現大約 8 億美元的稅後幫助被大約 10 億美元的外匯所抵消。回想一下，我們剛經歷了 2 年，這兩年帶來了 70 億美元的逆風影響。所以我認為每個人仍在恢復中，因此當前的定價動態是有道理的。

We have not experienced retailer pushback beyond normal discussions on how to maximize value for their shoppers and for consumers overall. And again, our model of driving innovation and therefore superiority and sales while we price and create value for retailers and shoppers seems to be resonating.

除了關於如何為購物者和整體消費者實現價值最大化的正常討論之外，我們還沒有遇到零售商的阻力。同樣，我們在為零售商和購物者定價和創造價值的同時推動創新、從而實現優勢和銷售的模式似乎引起了共鳴。

On the volume side, we feel very good about where we are in the trajectory of volume growth. Again, excluding China, we're already seeing volume growth of 20 basis points, sequential improvement in -- versus the prior quarters, which we would have expected. And again, that's in the context of 7% pricing still flowing into the market. We expect volumes will continue to grow. U.S., strong, as we said, Europe, strong, Latin America and India are strong. So we continue to see us progressing on that trajectory.

在銷售方面，我們對目前的銷售成長軌跡感到非常滿意。同樣，不包括中國，我們已經看到銷量成長了 20 個基點，與前幾季相比較上季有所改善，這是我們所預期的。再說一次，這是在 7% 的定價仍在流入市場的背景下。我們預計銷售量將持續成長。正如我們所說，美國強大，歐洲強大，拉丁美洲和印度也強大。因此，我們繼續看到我們在這條軌道上取得進展。

The next question comes from Rob Ottenstein of Evercore ISI.

下一個問題來自 Evercore ISI 的 Rob Ottenstein。

I want to drill in on China a little bit. Number one, kind of in the short term, how is the business there progressing? Any visibility or improvement there? And when do you think that may turn positive? And a little bit longer term or kind of strategically, we are hearing from some of the other companies we talk to that the Chinese market may not be as profitable and attractive as perhaps they may have thought a number of years ago and that perhaps the nature of competition is changing in China again, so love to get your thoughts on both China in the short term and the long term.

我想深入了解中國。第一，短期內，那裡的業務進度如何？那裡有任何可見性或改進嗎？您認為什麼時候這種情況可能會好轉？從更長遠的角度或戰略角度來看，我們從與我們交談的其他一些公司那裡得知，中國市場可能不像他們幾年前想像的那樣有利可圖和有吸引力，也許本質上是這樣的。中國的競爭格局再次發生變化，所以希望了解您對中國短期和長期的看法。

Thanks, Rob. I think we said all along that we don't expect the China recovery to be quick, extensive or linear. And I think that's playing out. The business health in China is really all driven by market dynamics right now. So total market volume continues to be down. It has been down over the past few quarters, between 7% and 9%. Value is down around 5% over the past few quarters. And that's the market I'm describing. So we're operating within a market that is still contracting post-COVID reopening.

謝謝，羅布。我想我們一直在說，我們預計中國的復甦不會是快速、廣泛或線性的。我認為這正在發揮作用。目前中國的商業健康狀況其實完全是由市場動態驅動的。因此，市場總成交量持續下降。過去幾個季度，這一數字一直在下降，介於 7% 到 9% 之間。過去幾季價值下降了約 5%。這就是我所描述的市場。因此，我們所處的市場在新冠疫情重新開放後仍在萎縮。

That said, we do believe that China continues to be an attractive place for us to do business. We've been there for 30 years. We have a very strong organization on the ground, R&D capability, supply chain capability and commercial capability. The Chinese consumer is a demanding consumer. The Chinese retail environment is a demanding retail environment. And that generally plays to our strength. So we believe that, a, we can play a value-creating role in China, and we expect the Chinese market to return to mid-single-digit growth here over the coming periods.

儘管如此，我們確實相信中國仍然是對我們開展業務具有吸引力的地方。我們已經在那裡待了 30 年了。我們擁有非常強大的實地組織、研發能力、供應鏈能力和商業能力。中國消費者是個挑剔的消費者。中國的零售環境是一個要求很高的零售環境。這通常會發揮我們的優勢。因此，我們相信，a，我們可以在中國發揮價值創造作用，我們預計中國市場在未來一段時間內將恢復到中個位數成長。

If you just look at the consumer structures, middle-income consumers, we have about 450 million, we estimate, in China today. That will grow probably north of 700 million over the next 5 years. So there is a class of consumers that we believe are attractive for our businesses. And therefore, we believe that our business in China can create significant value over the next few years. And we'll continue to remain invested.

如果你只看消費結構，我們估計，今天中國的中等收入消費者大約有4.5億。未來 5 年內，這一數字可能會成長到 7 億以上。因此，我們認為有一類消費者對我們的企業有吸引力。因此，我們相信我們在中國的業務可以在未來幾年創造巨大的價值。我們將繼續保持投資。

The next question comes from Lauren Lieberman of Barclays.

下一個問題來自巴克萊銀行的勞倫·利伯曼。

You've mentioned a return to volume growth in European Focus Markets, which is great to see. And obviously, market shares have generally held up well. But we started to see some pickup in private label share trends across Europe. You mentioned the European consumer being under pressure. So just kind of curious, maybe some more broad thoughts there on Europe on market share trends that you're seeing more real time versus what's kind of already transpired in the reported results, more the go-forward look, on European shares and volume trends?

您提到歐洲重點市場的銷售恢復成長，這是很高興看到的。顯然，市場佔有率整體保持良好。但我們開始看到整個歐洲自有品牌份額趨勢有所回升。您提到歐洲消費者面臨壓力。所以只是有點好奇，也許對歐洲市場份額趨勢有一些更廣泛的想法，你看到的更實時，與報告結果中已經發生的情況相比，更多的是關於歐洲股票和成交量趨勢的前瞻性展望？

Thank you. Look, the European -- let me focus here on the Western European side because I think that's where your question is relevant. Look, we've seen 15% organic sales growth in Europe Focus Markets, which is incredibly strong, a combination of 2% volume growth and strong price/mix. We have 40 basis points of share growth across the same geographies, which is very encouraging. The market is returning to volume growth. And that generally are positive signs.

謝謝。看，歐洲人——讓我集中討論西歐方面，因為我認為這就是你的問題相關的地方。看，我們看到歐洲重點市場的有機銷售成長了 15%，這是令人難以置信的強勁，2% 的銷售成長和強勁的價格/組合相結合。我們在同一地區的份額增加了 40 個基點，這非常令人鼓舞。市場正在恢復銷量成長。這通常是積極的跡象。

Yes, private label shares in Europe are growing. They continue to grow at about an 80 basis point clip month-over-month. But that still enables us to grow share in the same geographies. And I think that share growth is enabled by a strong portfolio across different brand tiers, across different cash outlays. The fact that we are present in all relevant channels across Europe, and that allows us to effectively compete. Even as consumers look at the private label versus branded value creation, the balance seems to be still in our favor.

是的，歐洲的自有品牌份額正在成長。它們繼續以每月約 80 個基點的速度成長。但這仍然使我們能夠增加在同一地區的份額。我認為，份額的成長是透過不同品牌層級、不同現金支出的強大投資組合實現的。事實上，我們的業務遍及歐洲所有相關管道，這使我們能夠有效競爭。即使消費者專注於自有品牌與品牌價值創造，平衡似乎仍對我們有利。

The next question comes from Bryan Spillane of Bank of America.

下一個問題來自美國銀行的 Bryan Spillane。

I guess, I have two connected questions. One is if we look at first quarter and even your commentary about guidance maybe higher end of the range, I know you've talked a lot -- you've talked a bit about some of the risks in the market. But just like what's been better so far this year is one question, so just that. And then related to that also, you talked about reinvestment. So if you can just give us some sense of kind of the sizing of that reinvestment and maybe where those dollars are going.

我想，我有兩個相關的問題。一個是，如果我們看看第一季度，甚至你對指導的評論可能是範圍的高端，我知道你已經談了很多——你已經談了一些市場上的一些風險。但就像今年迄今為止哪些方面做得更好一樣，這是一個問題，所以就這樣吧。與此相關的是，您談到了再投資。因此，您能否讓我們了解再投資的規模以及這些資金的去向。

If you look at the first quarter, I think the -- we are encouraged by the combination of factors here on the consumption side. Again, volume -- return to volume growth outside of China, we expect China to be choppy as we said all along. But even with China down, we've been able to grow -- and that certainly has been encouraging to us. And the depth and breadth of that growth, both across value and volume outside of China, is really encouraging us and giving us confidence that the model will continue to drive results that point to the upper end of the guidance ranges.

如果你看看第一季度，我認為我們對消費的綜合因素感到鼓舞。再說一遍，銷售量——回到中國以外的銷售成長，我們預計中國將出現波動，正如我們一直所說的那樣。但即使在中國經濟下滑的情況下，我們仍然能夠實現成長——這對我們來說無疑是令人鼓舞的。這種增長的深度和廣度，無論是在中國以外的價值還是數量上，都確實令人鼓舞，並使我們有信心該模型將繼續推動指向指導範圍上限的結果。

On the reinvestment side, we will continue to look for opportunities to invest when the return of that investment is attractive. It won't be driven by availability of funds. It will be driven by ability to create an attractive return. Our first priority, as you can imagine, in this current environment is to invest in ideas that drive market growth. So investing in products, investing in innovation that is driving new jobs to be done, investing in media spending that is driving household penetration, investing in communication to the consumer that drives usage in the right way to drive better delight for the consumer will be key.

在再投資方面，當投資回報有吸引力時，我們將繼續尋找投資機會。它不會由資金的可用性所驅動。它將由創造有吸引力的回報的能力所驅動。正如您可以想像的那樣，在當前環境下，我們的首要任務是投資於推動市場成長的創意。因此，投資於產品、投資於推動新就業機會的創新、投資於推動家庭普及的媒體支出、投資於與消費者的溝通，以正確的方式推動使用，從而為消費者帶來更好的愉悅感，這將是關鍵。

A couple of examples. Ninjamas in bedwetting was a sleepy category. We entered a couple of years ago. The category is growing 7%. We were able to drive 60% of that growth, which is 6x our fair share. Those are great examples where we can continue to invest, drive growth for the business, drive for our retailers and create value for shareholders. We continue to see opportunities in media. As we get sharper and sharper on our targeting across media around the world and our capabilities of scale, the ROI gets better. So we'll continue to drive up reach. We continue to drive up frequency. And again, that is a core driver for us, to drive household penetration, drive trial, which will turn into loyalty and repeat.

舉幾個例子。尿床忍者是一個令人昏昏欲睡的類別。我們幾年前進入的。該類別成長了 7%。我們推動了 60% 的成長，這是我們公平份額的 6 倍。這些都是我們可以繼續投資、推動業務成長、推動零售商並為股東創造價值的絕佳例子。我們繼續在媒體領域看到機會。隨著我們對世界各地媒體的定位和規模能力越來越敏銳，投資報酬率也會變得更好。因此，我們將繼續擴大覆蓋範圍。我們繼續提高頻率。再說一次，這是我們的核心驅動力，推動家庭滲透，推動試用，這將轉化為忠誠度和回頭客。

The last bucket I will give you is investing in supply resilience and productivity. Our supply chain resilience, we see as a core competitive advantage for our retail partners and for ourselves. So we'll continue to ensure that our capacity to demand ratio is where we want it to be. And investing in productivity, we believe, has a high payout and is critical for us to continue the investment in superiority, which is part of the business model. So those are the headlines. But be reassured, we'll do it on a very disciplined basis with return on investment as the top priority.

我要給你的最後一桶是投資在供應彈性和生產力。我們將供應鏈的彈性視為我們的零售合作夥伴和我們自己的核心競爭優勢。因此，我們將繼續確保我們的產能需求比達到我們想要的水平。我們相信，對生產力的投資會帶來高回報，對於我們繼續對優勢進行投資至關重要，這是商業模式的一部分。這些就是頭條新聞。但請放心，我們將在非常嚴格的基礎上做到這一點，並將投資回報作為首要任務。

The next question comes from Andrea Teixeira of JPMorgan.

下一個問題來自摩根大通的安德里亞·特謝拉。

Andre, your comments about volume, I would like to drill down a little bit. You mentioned China. I believe you are still looking to a mid-single-digit growth. And obviously, I understand the choppiness of the market. And you had SK-II down in the low-teens. So I'm assuming for that to happen, you're expecting SK-II to gradually improve or lap easier comps as we go through the balance of the year. And then when you mentioned -- like doing the math when you said pricing, as we decompose your guidance, right, the 4% to 5% for organic total company, you mentioned expect sequential 3% to 4% decline in the benefit of pricing, right?

安德烈，您對數量的評論，我想深入探討。你提到了中國。我相信您仍然希望實現中個位數的成長。顯然，我理解市場的波動。 SK-II 的價格也跌到了十幾歲。因此，我假設要實現這一點，您會期望 SK-II 在我們度過今年餘下的時間時逐漸改進或取得更輕鬆的成績。然後，當您提到——就像在您提到定價時進行數學計算一樣，當我們分解您的指導時，對吧，有機總公司的4% 至5%，您提到預計定價收益將連續下降3% 至4% ， 正確的？

So it was a good 7%, so you would be implying towards 3% to 4% in the next 2 quarters. So with that being said, it implies in the next 2 quarters, some sort of improvement in volume, right, or at least some sort of inflection. So I was trying to figure that out in the context of what you said about China and what you said about total company, basically what it regresses to, it regresses to an improvement in China? Is that what we should be thinking?

所以這是一個很好的 7%，所以你會暗示在接下來的 2 個季度內會達到 3% 到 4%。話雖這麼說，這意味著在接下來的兩個季度，銷量會有所改善，或至少會出現某種變化。所以我試圖在你所說的關於中國和你所說的整個公司的背景下弄清楚這一點，基本上它回歸到什麼，它回歸到中國的進步？這是我們該思考的嗎？

So first part of your question, we obviously want to see SK-II return to growth. But the volume impact of SK-II is relatively limited. Because the volume-to-organic sales ratio obviously is very high unit sales. So China, we believe, will return to mid-single-digit growth. When exactly that's going to happen is really hard to predict. And I would say, like we have delivered 7% organic sales growth in the first quarter with China down, I think we'll continue to operate and not counting on China recovery as the core catalyst to growth for the coming quarters.

所以你問題的第一部分，我們顯然希望看到 SK-II 恢復成長。但SK-II的銷售影響相對有限。因為銷量與有機銷量的比率顯然非常高。因此，我們相信中國將恢復中個位數成長。究竟什麼時候會發生真的很難預測。我想說，就像我們在第一季在中國經濟下滑的情況下實現了7% 的有機銷售成長一樣，我認為我們將繼續運營，而不是指望中國的復甦作為未來幾季成長的核心催化劑。

On your sequential question on volume, you're right. As we said, the pricing contribution to organic sales growth will decrease 3 to 4 points over the coming quarters. And we expect volume to progress sequentially. The exact trajectory of that progression, I think, is questionable. And I won't make a prediction here. But I'll tell you that the progress we're seeing from minus 6 to minus 3 to flat -- to minus 1 to now flat is pointing in that right direction. So we see we're on the right path. And we will continue to invest to drive wholesale penetration and create that volume growth in our business.

關於你關於音量的連續問題，你是對的。正如我們所說，未來幾季定價對有機銷售成長的貢獻將下降 3 到 4 個百分點。我們預計成交量將連續成長。我認為，這一進展的確切軌跡是值得懷疑的。我不會在這裡做出預測。但我會告訴你，我們所看到的從-6到-3再到持平——再到-1到現在持平的進展正指向正確的方向。所以我們看到我們走在正確的道路上。我們將繼續投資以推動批發滲透並創造我們業務的銷售成長。

The next question comes from Olivia Tong of Raymond James.

下一個問題來自 Raymond James 的 Olivia Tong。

Andre, you talked about the changes in FX and how you've been able to absorb that into the fiscal year outlook. Can you discuss what's embedded in your outlook in terms of the consumer, the economy? Obviously, increasing risk or concerns around trade-downs, lower volumes and macros in general, so if you could talk about that. And then also your ability and -- your agility to switch between spending that is either net to sales versus operating in light of potentially volatile conditions.

安德烈，您談到了外匯的變化以及您如何將其納入財年展望中。能談談您對消費者和經濟的看法嗎？顯然，總體而言，圍繞貿易下降、交易量下降和宏觀經濟的風險或擔憂不斷增加，所以您是否可以談談這一點。然後還有你的能力和靈活性，也就是你在淨銷售額支出與潛在波動條件下營運之間切換的能力。

Yes. Thanks, Olivia. Look, the consumer continues to be remarkably resilient. As we said in the U.S., the consumption levels are actually stable. Our volume share and our value share are growing. And that's true in Europe and in most parts of the world. And I interpret that as our portfolio doing exactly the job that it's supposed to do. And building a portfolio that is grounded in superiority in daily-use categories that are nondiscretionary, I think, is serving us extremely well.

是的。謝謝，奧莉維亞。看起來，消費者仍然具有驚人的彈性。正如我們在美國所說，消費水準實際上是穩定的。我們的銷售份額和價值份額都在成長。在歐洲和世界大部分地區都是如此。我將其解釋為我們的投資組合完全完成了它應該做的工作。我認為，建立一個基於日常使用類別的優勢的投資組合，這是非自由裁量的，對我們非常有幫助。

We're able to add value, bring value to the consumer. And we are doing that in every tier, not just in the premium tier but in the mid-tier and in value tiers across the world, which allows us to serve the consumer even as their spending preferences might change. Now we haven't seen a significant change in their preference yet. If anything, consumers that are choosing P&G products continue to trade up within our portfolio.

我們能夠增加價值，為消費者帶來價值。我們在每個層面都這樣做，不僅是在高端層面，而且在世界各地的中端和價值層面，這使我們能夠為消費者提供服務，即使他們的消費偏好可能會改變。現在我們還沒有看到他們的偏好有重大變化。如果有什麼不同的話，那就是選擇寶潔產品的消費者繼續在我們的產品組合中進行升級。

But you can see our ability to grow in markets even when we see private label shares expand. And so we don't expect a significant change in that profile. And we believe we are well set up to grow even if the consumer feels a bit more of a pinch here going into the fall or winter season. The main intervention for us continues to be investing in innovation and continue to invest in media supports to communicate the strength and the value that our brands can provide.

但即使我們看到自有品牌份額擴大，您也可以看到我們在市場上成長的能力。因此，我們預計該概況不會發生重大變化。我們相信，即使消費者在進入秋季或冬季時感到更加困難，我們也已經做好了成長的準備。我們的主要幹預措施仍然是投資於創新，並繼續投資於媒體支持，以傳達我們品牌可以提供的實力和價值。

We don't see a significant need to drive price promotion. Our focus, if we promote, if we look for in-store support is really to drive regimen. So we view it as a strategic tool to drive either trial or habit formation, i.e., regimen steps added to the laundry regime or the hair care regime, for example. Because that drives incremental consumption. It drives growth for our retail partners and for us. In many cases, our innovation is strong enough to get in-store support. And that's really what we're after. When the product in and of itself generates enough traffic and consumption, so retailers want to support it, that's the goal we're going after.

我們認為沒有必要推動價格促銷。如果我們進行促銷，如果我們尋求店內支持，我們的重點實際上是推動養生。因此，我們將其視為推動試驗或習慣形成的策略工具，例如，在洗衣制度或護髮制度中添加護理步驟。因為這會推動增量消費。它推動了我們的零售合作夥伴和我們自己的成長。在許多情況下，我們的創新足夠強大，足以獲得店內支援。這正是我們所追求的。當產品本身產生足夠的流量和消費，因此零售商想要支持它，這就是我們追求的目標。

The next question comes from Chris Carey of Wells Fargo Securities.

下一個問題來自富國銀行證券的克里斯凱裡。

I was wondering if you could expand on two categories, which have been important for volume growth and seemingly should be important ahead. Just first on laundry, we've seen an improvement, a reacceleration in trends. Can you just expand on what's driving that and the durability?

我想知道您是否可以擴展兩個類別，這兩個類別對於銷售成長很重要，而且似乎在未來也應該很重要。首先在洗衣方面，我們看到了趨勢的改善和重新加速。能否詳細介紹一下其驅動因素和耐用性？

And then second, in Personal Health Care, I believe that was an important driver of volume growth in the quarter. Can you just expand on what exactly was driving that in the quarter and if you think those trends are also sustainable go-forward? So I'm just trying to get a sense of some of the volume durability that we saw in the quarter go-forward, specifically in the context of potentially some volatility out of China likely to persist.

其次，在個人醫療保健領域，我認為這是本季銷售成長的重要驅動力。您能否詳細說明本季推動這一趨勢的到底是什麼？您是否認為這些趨勢也是永續發展的？因此，我只是想了解我們在本季看到的一些成交量的持久性，特別是在中國可能持續存在一些波動的背景下。

Yes. Thanks, Chris. The laundry business is very encouraging. Results around the world are very strong. Let me focus on the U.S. market because that's -- it's the biggest market and you have the highest visibility to. But if you look at the trends, they are very encouraging. We are now growing value and volume share in U.S. Fabric Care. Value share has been flat over the past 3 months. Volume share has been up 1.6 points. So we continue to push the laundry business forward. We have record-high fabric enhancer shares. And we have record-high laundry consumption in the U.S.

是的。謝謝，克里斯。洗衣生意非常令人鼓舞。世界各地的結果都非常強勁。讓我專注於美國市場，因為這是最大的市場，而且您的知名度最高。但如果你看看這些趨勢，你會發現它們非常令人鼓舞。我們現在在美國織物護理領域的價值和銷售份額不斷增長。過去三個月價值份額持平。成交量份額上升了 1.6 個百分點。因此，我們繼續推動洗衣業務向前發展。我們擁有創紀錄的織物增強劑份額。美國的洗衣消費量創歷史新高

Most importantly, I think, is the fact that we're driving 70% of the category growth in laundry. And we're driving 100% of the category growth in fabric enhancers. And it's really driven by strong innovation, strong superiority and doubling down on consumer-relevant communication and in-store support. So I fully believe that this will only accelerate. And to your question, yes, it is sustainable because it's just in line with the business model.

我認為最重要的是，我們推動了洗衣業 70% 的成長。我們正在推動織物增強劑類別 100% 的成長。它的真正驅動力是強大的創新、強大的優勢以及加倍與消費者相關的溝通和店內支援。所以我完全相信這只會加速。對於你的問題，是的，它是可持續的，因為它符合商業模式。

PHC is doing extremely well around the world. And obviously, the seasonality here plays a key role. Going into the season, we see strong results, which is part of the strength in volumes that you see. And the last part I'll leave you with is we've invested significantly and continue to invest in strengthening our supply capability in Personal Health Care, which will be needed to support that strong growth going forward. But feel good about both businesses, and yes, I think the trajectory is absolutely sustainable.

初級衛生保健在世界各地的表現都非常好。顯然，季節性在這裡起著關鍵作用。進入本賽季，我們看到了強勁的業績，這是您所看到的銷售優勢的一部分。我要留給大家的最後一部分是，我們已經並繼續投資加強我們在個人醫療保健方面的供應能力，這是支持未來強勁增長所必需的。但對這兩項業務都感覺良好，是的，我認為這種發展軌跡絕對是可持續的。

The next question comes from Filippo Falorni of Citi.

下一個問題來自花旗銀行的 Filippo Falorni。

Just a question on gross margin, clearly very strong, the performance in the quarter, big inflection in terms of the year-over-year increase. You seem like you have pretty good visibility in the first half, at least on the commodity front. Can you give us a sense of how you're thinking the second half will play out, especially as pricing contribution comes down?

只是一個關於毛利率的問題，顯然非常強勁，本季的表現，比去年同期成長出現了很大的變化。看起來你在上半年有很好的能見度，至少在大宗商品方面是如此。您能否告訴我們您對下半年的看法，特別是在定價貢獻下降的情況下？

Yes, when we talked about the cadence of earnings, I think it's important to understand the drivers of the gross margin expansion we saw in quarter 1. And we expect some normalization of gross margin. We were certainly benefiting from a high price contribution in quarter 1. And as we said, that price contribution will ease over the coming quarters.

是的，當我們談論獲利節奏時，我認為了解第一季毛利率擴張的驅動因素很重要。我們預計毛利率會出現一定程度的正常化。我們當然受益於第一季的高價格貢獻。正如我們所說，價格貢獻將在未來幾季有所緩解。

The biggest part of the commodity help, about 33% of the $800 million after-tax commodity help has materialized in quarter 1. So that's a positive to gross margin relative to the balance of the year. And the foreign exchange rate headwinds will accelerate over the coming quarters.

大宗商品援助的最大部分，即 8 億美元稅後大宗商品援助中的約 33% 已在第一季度兌現。因此，相對於今年剩餘時間，這對毛利率來說是積極的。未來幾個季度，外匯匯率的不利因素將加速。

On the other hand, we will accelerate and continue to drive strong productivity. We will continue to drive trade-up and innovation. And we continue to drive every other element of productivity, not only in gross margin but across the P&L and the balance sheet. But I want you to take away that the gross margin expansion in quarter 1 is very strong. But we have headwinds going into the balance of the year.

另一方面，我們將加速並繼續推動強勁的生產力。我們將繼續推動以舊換新和創新。我們繼續推動生產力的所有其他要素，不僅在毛利率方面，而且在損益表和資產負債表方面。但我希望您明白，第一季的毛利率擴張非常強勁。但今年剩下的時間我們遇到了阻力。

The next question comes from Peter Grom of UBS.

下一個問題來自瑞銀集團的彼得‧葛羅姆。

So I wanted to ask specifically on Latin America, 19% growth in the quarter, very strong. And you may have alluded to this. But are you already seeing a return to volume growth in the region? And then just thinking through the performance in the quarter, can you maybe just unpack what you're seeing in terms of broader category performance versus how much of this growth is a function of share gains?

所以我想具體詢問拉丁美洲，該季度增長 19%，非常強勁。您可能已經提到過這一點。但您是否已經看到該地區銷量恢復成長？然後，只要考慮本季的業績，您是否可以從更廣泛的類別業績方面來分析您所看到的情況，以及這種增長有多少是股票收益的函數？

Look, the Latin America business is on fire. And I think it is on fire because we've chosen maybe opposite to the market to double down on superiority. When we saw the need to price for foreign exchange and commodity impacts in Latin America, the team made the choice to double down on innovation and price for the innovation and to offset foreign exchange rate, inflation and commodities. And that clearly has played out well. We are seeing growth in our categories. And we are seeing share growth in Latin America.

看，拉丁美洲的生意正在火熱進行中。我認為它之所以火爆，是因為我們選擇了與市場相反的方式，以加倍優勢。當我們看到需要為拉丁美洲的外匯和大宗商品影響定價時，團隊選擇加倍加大創新和創新價格的力度，以抵消外匯匯率、通貨膨脹和大宗商品的影響。這顯然取得了良好的效果。我們看到我們的品類不斷成長。我們看到拉丁美洲的份額正在增長。

The growth is both on the volume side and on the value side in the biggest markets, in Brazil, Mexico, for example. I think the biggest headwind that we have to acknowledge is Argentina, where it's very difficult to make progress at this point in time, given the level of inflation, some constraints in terms of ability to price. So outside of Argentina, I can only paint a very positive picture of the Latin America growth construction. And again, it's grounded in the superiority of our brands. And I feel very strong about the sustainability of that model.

在最大的市場（例如巴西、墨西哥），成長既體現在數量方面，也體現在價值方面。我認為我們必須承認的最大阻力是阿根廷，考慮到通膨水準和定價能力方面的一些限制，目前很難取得進展。因此，在阿根廷之外，我只能對拉丁美洲的成長建設描繪出非常正面的景象。再說一次，它是基於我們品牌的優勢。我對這種模式的可持續性非常有信心。

The next question comes from Mark Astrachan of Stifel.

下一個問題來自 Stifel 的 Mark Astrachan。

Two sort of unrelated follow-ups. One, just on China, given your commentary about the middle class, I think everybody is obviously aware that there's just a growing middle class and that they'll ultimately consume more. But any sort of changes in your view about how quickly the middle class premiumizes purchases? Obviously, SK-II is maybe sort of a one-off. But any changes there in terms of how quickly you think that they can go for more premium-priced products? Does that potentially change how Procter thinks about its product positioning or portfolio positioning in the market?

兩種不相關的後續行動。第一，就中國而言，鑑於您對中產階級的評論，我認為每個人顯然都意識到中產階級的數量正在增長，而且他們最終會消費更多。但您對中產階級購買溢價的速度的看法有什麼改變嗎？顯然，SK-II 可能是一次性的。但是，您認為他們購買價格較高的產品的速度有什麼變化嗎？這是否可能改變寶潔公司對其產品定位或市場產品組合定位的看法？

And then on the gross margin versus marketing spend sort of decision tree, if gross margin moderates, how do we think about the incremental reinvestment or marketing investment from an SG&A standpoint through the year? Would that inversely kind of move with gross margin? Or I should say, would it move with gross margin, meaning less gross margin expansion, less reinvestment?

然後，在毛利率與行銷支出的決策樹上，如果毛利率放緩，我們如何從 SG&A 的角度考慮全年的增量再投資或行銷投資？這會與毛利率成反比嗎？或者我應該說，它是否會隨著毛利率的變化而變化，這意味著毛利率擴張會減少，再投資也會減少？

Yes. Look, I really don't have any more insights on the China recovery timing. You see the volatility in the market. That will directly correlate with consumer confidence, income levels and therefore recovery timing. I think we're hoping for faster, but we're prepared for longer would be my answer here.

是的。聽著，我真的對中國復甦的時機沒有更多的見解。你會看到市場的波動。這將與消費者信心、收入水平以及復甦時機直接相關。我認為我們希望速度更快，但我們已經做好了更長的準備，這就是我的答案。

On the gross margin versus marketing spending side, when I say we're ROI-driven, I really mean we're ROI-driven. So there's no direct correlation between availability of funds and investment levels. If we continue to see strong response to the marketing spend, increases that we deliver in quarter 1, I think there's a strong incentive for us to continue that level of investment.

在毛利率與行銷支出方面，當我說我們是投資報酬率驅動的時，我真正的意思是我們是投資報酬率驅動的。因此，資金的可用性和投資水準之間沒有直接的相關性。如果我們繼續看到對行銷支出的強烈反應，以及我們在第一季實現的成長，我認為我們有很大的動力繼續這個水準的投資。

I also expect that our gross margin expansion and our overall growth contribution availability will continue to enable us to drive strong innovation and drive strong support of those innovations. That's part of the business model. That's why again it has to be a combination of driving very strong productivity to reinvest in superiority, to grow markets. And we have to keep that cycle spinning.

我還預計，我們的毛利率擴張和整體成長貢獻將繼續使我們能夠推動強大的創新，並為這些創新提供強有力的支持。這是商業模式的一部分。這就是為什麼它必須結合驅動非常強大的生產力來再投資於優勢和發展市場。我們必須保持這個循環。

The next question comes from Edward Lewis of Redburn Atlantic.

下一個問題來自雷德伯恩大西洋公司的愛德華·劉易斯。

Another strong quarter in the U.S., seeing both volume and value growth. Just looking back at 2020, where we were dealing with obviously a lot of COVID headwinds, you were talking about growing about 4% to 6% as a sustainable rate of growth in the U.S. In light of all that's gone on in the past few years and seeing where we are in the U.S. at the moment with the consumer, are you still comfortable with that range over the longer term?

美國又一個強勁的季度，銷售和價值均實現成長。回顧 2020 年，我們顯然面臨著許多新冠疫情的不利因素，考慮到過去幾年發生的一切，美國的可持續增長率約為 4% 至 6%看看我們目前在美國的消費者情況，從長遠來看，您是否仍然對這個範圍感到滿意？

Look, I won't give you guidance on a market-by-market basis. I think the -- what is proving out is that the business model we're driving in the U.S. is very successful. If we are successful in continuing to drive market growth, that will continue to drive sales ahead of that market growth for us while being sustainable because we create business instead of taking business from somebody else.

聽著，我不會根據每個市場為您提供指導。我認為，事實證明，我們在美國推行的商業模式非常成功。如果我們成功地繼續推動市場成長，那麼這將繼續推動我們的銷售領先於市場成長，同時保持永續性，因為我們創造業務而不是從別人那裡奪取業務。

If that model is successful, which I believe it will, I feel very strongly about the growth prospects of the U.S. And again, we're doubling down in every dimension of superiority. We're doubling down in every dimension of market execution. So my overall confidence in the U.S. market capability and growth trajectory is very high.

如果這種模式成功（我相信會成功），我對美國的成長前景有非常強烈的感覺。而且，我們將在各方面的優勢加倍努力。我們在市場執行的各個方面都加倍努力。因此，我對美國市場能力和成長軌跡的整體信心非常高。

There are no further questions at this time.

目前沒有其他問題。

Okay. Thank you very much for joining us today. Again, very strong first quarter in the year, and we'll look forward to speaking with you. If you have any questions, John and I will be available all day. So please feel free to call or e-mail. Thank you very much.

好的。非常感謝您今天加入我們。同樣，今年第一季非常強勁，我們期待與您交談。如果您有任何疑問，約翰和我將全天為您服務。因此，請隨時致電或發送電子郵件。非常感謝。

That concludes today's conference. Thank you for your participation, and you may now disconnect. Have a great day.

今天的會議到此結束。感謝您的參與，您現在可以斷開連接。祝你有美好的一天。