Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| And we're proud that we now have converted 60% of our toothpaste SKUs around the world to the recyclable tube |
| So, we feel good about where we are |
| And some of the strategies that we're deploying around premiumization have always played -- will play very, very favorably in Latin America as we see some of the vitality of those categories come back |
| And I think those two spots do a wonderful job in capturing what we're dealing with around the world |
| Cavities continues to be the number one disease in the world and we're well-positioned to help combat that and provide better health outcomes and ultimately, improve education at the same time |
| And obviously, with the incredibly -- incredible growth of skin cancer around the world, our ability to take the number one brand recommended by dermatologists and push that with a partnership with Andy Cohen has been terrific |
| So, we feel very good about the durability |
| and obviously, our ability to continue to drive strength-to-strength with the great shares that we have there |
| Starting with 2023, you saw obviously strong growth at the top line, 8.5% organic sales growth, 8.5% top line dollar sales growth |
| And you can see after a significant year of inflation in 2022, we really ramped up our funding and growth efforts in 2023 and delivered a record performance for the business |
| Importantly, we saw an inflection of volume in the back half of the year, and we exited the year with positive volume growth ex the impact of private label that we brought into the business |
| So, we've driven the top line, more leverage in the P&L, which is driving more earnings growth, that earnings growth with improved outlook on working capital |
| Our people have embraced the opportunity to learn and upscale in this important area, and we were proud to be recognized with the Brandon Hall Gold Award for this program |
| Improved free cash flow |
| Once we had the earnings growth combined with better working capital, you can see the incredible power that we have to drive free cash flow through the income statement and ultimately up 63% in 2023 |
| We've seen consistent double-digit ROI improvement over the last few years, both when we look at overall media ROIs as well as when we break it down by digital ROIs and traditional media ROIs |
| We drove free cash flow up 63% on the year, which is again our ability to return money to shareholders, which was terrific in terms of our performance in that area |
| And we have great proof points here |
| We expect another strong year in 2024 |
| And again, that's allowed us to return money to our shareholders, something that we're very proud of |
| And together with shareholder repurchases, we've paid back $28 billion to our shareholders, which, again, something we're very, very proud of |
| So, the advertising has been fundamental in driving that and why we've allocated such an incremental amount of money into the Hill's business because we really feel good about the business model that we have, both in terms of driving vet endorsements, translating that to premiumization of the category, and then driving incremental share in the categories and the segments in which we compete |
| We continue to expect advertising to be up on the year -- advertising will be up on the year, which is again a big catalyst for our growth that we've seen over the last couple of years |
| We had this incredible opportunity to speak from that pedestal and talk to consumers about improving oral health, and ultimately, presuming our environment and hitting our environmental objectives for 2025 |
| So, that's what's so exciting about the business opportunities that we see on the Hill's business, our ability to continue to drive incremental share through brand penetration and obviously, continue to expand the presence of the brand in segments that we're not currently competing in very aggressively like vet |
| We have a proven track record of investing in and building strategic capabilities |
| No better way to talk about our social impact program than in our Bright Smiles and Bright Future program, where we've demonstrated our ability to educate the importance of oral health all over the world, particularly to lower socioeconomic areas |
| And I think, again, an attribute to the -- testament to the fact that we really drove a consistency of purpose on digital and what we wanted to accomplish and now really moving that into an omnichannel environment and the benefits that we're seeing both across brick-and-mortar and our off-line business -- our online business, excuse me |
| Reaccelerating cash flow and investment and driving shareholder value through consistent and compounded earnings per share growth, and importantly, making sure that we continue to drive a healthier future for all people, their pets, and our planet |
| That's helped us drive our off-line growth as well |
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| On the U.S., a very challenging market for us |
| Our share continues to be low relative to where we think it can be given the low brand awareness that we have in the category and the low penetration that we have in the category |
| So, I wonder how that came about? Was that retailer-driven? Was that from your end? I guess the reason I ask is, obviously, it's a channel that's been under pressure |
| And I say that in the context of when relational databases hit the market years ago, people -- a lot of companies took the off-the-shelf solutions, customized that had a lot of difficulty maintaining them, changing the way even change |
| For those of you with dogs, you know that fur can be a real problem on your clothing |
| Hill's, likewise, our penetration is very low in the category |
| And I think during COVID, we really lost a little bit of that edge that we had historically in store |
| Lot of gum issues around the world |
| Unfortunately, when pets suffer from cancer and the type of prescription drugs that are prescribed really lessens their appetite |
| Consumers first reason to help their gum problems is to go to a softer toothbrush |
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