REPORTING SECOND QUARTER 2023 EARNINGS

Thursday, July 27, 2023

On July 27, 2023, we reported our second quarter 2023 results.

"I am pleased with our second quarter results, which demonstrate broad-based strength across our business, with strong, profitable top-line growth in all regions and categories. Continuous reinvestment in our brands and capabilities, combined with ongoing price execution, cost discipline and strong volume/mix performance drove these results," said Dirk Van de Put, Chairman and Chief Executive Officer. "We continue to drive robust consumer demand in our core categories across the vast majority of our businesses, and our teams continue to make significant progress against our portfolio reshaping initiatives as we remain focused on accelerating strong, sustainable growth. Our strong first-half performance and category resilience provides confidence to raise both our net revenue and earnings outlooks for the year."

Second Quarter Highlights

• Net revenues increased +17.0% driven by Organic Net Revenue¹ growth of +15.8% with strong Volume/Mix performance in 3 of 4 regions
• Diluted EPS was $0.69, up 27.8%; Adjusted EPS¹ was $0.76, up +21.5% on a constant currency basis
• Year-to-date cash provided by operating activities was $2.0 billion; Free Cash Flow¹ was $1.5 billion
• Return of capital to shareholders was $1.7 billion in the first half of the year
• Announcing +10% increase to quarterly dividend
• Raising both Organic Net Revenue and Adjusted EPS growth outlook to 12%+

For more information, see our press release here.

1. Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of the press release for more information.