ELAINE Logical Analysis of Procter & Gamble Q1 2023 Earnings Conference Transcript

Earnings narrative helps us to understand where are the pain points across the economy. Earnings from leaders of consumer staples like Procter & Gamble offers clues on where consumer confidence is heading, in turn serves as a leading signal to the economy.

ELAINE analyzed PG's earning narrative, and was quick to point out the key relevant areas:
(growth,headwinds,productivity,savings).

"Combined, headwinds from these items are now estimated at approximately $3.9 billion after tax or $1.57 a share, a 27 percentage point headwind to EPS growth for the year. We will offset a portion of these cost headwinds with price increases and productivity savings. We will continue to invest in irresistible superiority, which is even more important as we compete in some markets with local or non-US based competitors that don't see the same foreign exchange rate impact."

It also pointed out the importance of productivity as an offset to the negative impacts.

"Core operating margin decreased 70 basis points, currency-neutral core operating margin increased 10 basis points, productivity improvements were a 230 basis help to the quarter"