Jon R. Moeller
Chairman of the Board, President and Chief Executive Officer at Procter & Gamble
Thanks, Andre. I want to talk briefly about this Company, it's strategy and our organization, both as a snapback reflection on what's been accomplished and as a glimpse forward into what's possible.
Three quick reflections looking back. First, Pre-COVID, during COVID and since COVID, pre-inflation and since inflation, consistent strong topline growth across categories and geographies; core earnings per share growth, each of the last five fiscal years; consistent cash return to shareowners. Our strategy has sustained us through all of this. Second lookback in the past two years, nearly half of our earnings wiped out by commodities, transportation and foreign exchange headwinds. Yet, we still grew earnings per share in each of those years, while delivering 7% organic sales growth each year; increasing investment in innovation, brand building and growing markets; and growing market share in aggregate in the process.
As I said last quarter, if you told me four years ago that we would grow topline and bottom-line and deliver strong cash return to shareowners through a global pandemic, with employees challenged to get to the workplace and the context of a war in Europe, major disruption in global supply chains, rapidly escalating costs, the highest consumer inflation in 40 years and fundamental shifts in consumer behavior and channel relevance, it would have been hard to agree. But that's exactly what this team has done. Over the last five years, they've added over $15 billion in incremental sales, growing our share of the global market, growing core earnings per share by 40% and returned over $80 billion of cash to shareowners.
Two more granular examples, testing both strategy and execution in some of the harshest conditions. Latin America, significant devaluation across all major currencies. Inflation in Brazil peaking above 12%, 9% in Mexico, over 70% in Argentina. Despite this, our team has delivered three consecutive years of U.S. dollar sales growth: mid-teens in fiscal '22 and mid-20s this year. Market share growth on both the value -- excuse me, volume and value basis, nearly 30% profit growth this year in dollars, over 50% on a local currency basis. One more test, Turkey, over the past two years, the lira has devalued more than 300%. We've had to take multiple ways of significant pricing. Still, the strength of our strategy and its execution by the organization has enabled us to grow dollar sales, grow volume, sequentially improve market share and maintain profitability in the market.
As you all know, past performance is no guarantee of future results and certainly, no excuse to stand still, quite the opposite. There will be bumps in the road ahead. We are still navigating through plenty of challenges right now. Each of these lookbacks, though, gives us confidence in the effectiveness of the strategy, grounded in and focused on consumers and an appreciation for the capability of our talented, creative, agile and committed organization. Our integrated strategy, a focused portfolio of products in daily use categories where performance drives brand choice, superiority through innovation across the five vectors of product, package, brand communication, retail execution and value, holistically defined; leveraging that superiority to grow markets and our share in them to jointly create value with our retail partners; productivity to offset cost challenges, while funding investments in innovation and brand-building and market growth.
We've reaccelerated productivity back to pre-COVID levels with an objective for gross savings and cost of goods sold of up to $1.5 billion before tax. We have line of sight to savings from improved marketing productivity, more efficiency and greater effectiveness, avoiding excess frequency and reducing waste. Constructive disruption of ourselves and our industry to adapt and create new trends and technologies and capabilities, that often extend our competitive advantage. And an organization structure that's increasingly more empowered, agile and accountable. An increasingly diverse organization, now with 50% female representation in manager roles across the world.
We're strengthening the execution of our strategy in four focus areas. First, with Supply Chain 3.0, we're driving improved capacity, greater agility, flexibility, scalability, transparency and resilience along with greater productivity. We recently launched a platform of supply chain services to enable best-in-class service and streamline the end-to-end supply chain. These initiatives have been very well received by retailers. Our next step to drive joint value creation with retailers is to simplify our SKU portfolio to improve the shopping experience, increase on-shelf availability and further streamline supply for the entire ecosystem. Higher quality, more transparency, increased supply assurance and higher on-shelf availability of our products, each improves superiority with consumers and improves what is already the top-ranked supply chain by our retail partners and third-party industry surveys. All of this is a huge value creation opportunity for P&G and our retail partners.
Next focus area, environmental sustainability to create superior propositions for consumers, customers and shareholders, while improving our environmental impact; reducing the footprint of our operations; enabling consumers to reduce their footprint; and innovating to deliver cross-industry solutions for some of our most pressing challenges. Our third digital acumen, leveraging data and digitization to delight consumers, streamline the supply chain, increase quality, drive productivity, all driving shareholder value. And fourth, a superior employee value equation for all genders identities, races, ethnicities, sexual orientations, ages and abilities for all roles to ensure we continue to attract, retain and develop the best talent.
At the end of the day, P&G serves people with a strong desire to improve their lives and the lives of their families. We stand by people and support them in small but meaningful ways every day with superior performing products, superior value. We strive to do this in the most responsible way, consistent with P&G's values and principles. This approach, with consumers at the center and an organization built to serve them, has served us and our many stakeholders well. It will guide our actions as we move forward. If we do this effectively, consumers benefit, customers will grow their businesses, employees will develop and thrive, society will benefit and shareholders will continue to be rewarded for their investment, not measured by a quarter or even a year but over time.
I believe in this Company, in our organization, its capabilities and in the commitment of P&G people to serve consumers. I'm excited about what lays ahead. Of course, I have my worries and concerns, and will continue to face challenges and some dark days and nights. But the future in general holds great promise. We'll continue to be guided by our purpose, values and principles, and relentless execution of our strategy to move forward to an ever brighter dawn. P&G celebrates its 186 anniversary this year. I believe we have an even stronger hand to play today than we've had historically.
With that, I'll hand it back to Andre to outline our guidance for the new year.
