The company announced the 2024 Transformation Initiative, targeting $3 billion in gross productivity savings and $1.5 billion in pre-tax costs. The initiative focuses on accelerating innovation, optimizing margin structure, and wiring the organization for growth.

The company completed the sale of its PPE business for $635 million, resulting in a pre-tax gain of $566 million. This move aligns with the company's strategy to focus on core product categories.

Cash provided by operations was $3.2 billion, and the company increased its dividend by 3.4%. Share repurchases and dividends amounted to $2.6 billion, demonstrating a commitment to returning value to shareholders.

Gross margin increased by 140 basis points to 35.8%, with adjusted gross margin increasing 200 basis points to 36.5%. This improvement was primarily driven by gross productivity savings of approximately $500 million from integrated margin management.

North America's operating profit increased by 1.1%, while International Personal Care's operating profit increased by 24.5%. International Family Care and Professional's operating profit increased by 31.4%. This highlights the varying degrees of success in different markets.

The company continues to implement plans to improve its competitive position by achieving cost reductions in its operations. The 2024 Transformation Initiative intends to improve focus on growth and reduce the structural cost base.

The company acknowledges the risk of increased costs for raw materials, energy, and transportation, which could adversely affect financial results if selling prices are not adjusted accordingly.

The company relies extensively on information and operational technology systems, making them vulnerable to cyber threats, privacy breaches, and data breaches, which could have a material adverse effect on the business.

The company's international operations are subject to foreign market risks, including changes in foreign currency exchange rates, currency restrictions, and political, social, and economic instability, which may adversely affect financial results.

The company operates in highly competitive markets and faces risks related to changing consumer preferences, including a shift to lower-cost options and increased concerns about environmental sustainability.

The company is dependent on key customers, including large-format retailers and e-tailers, and may be negatively affected by changes in their policies or loss of a significant customer.

The company's ability to develop new products is affected by whether it can successfully anticipate consumer needs and preferences, develop and fund technological innovations, and receive and maintain necessary patent and trademark protection.

Gross productivity savings from integrated margin management contributed approximately $500 million, favorably impacting pricing net of inflation and volume gains.

The 2024 Transformation Initiative is intended to improve focus on growth and reduce the structural cost base by realigning internal operating and management structure to streamline the global supply chain and improve the efficiency of corporate and regional overhead cost structures.

While the overall cost basket remains elevated versus pre-pandemic levels, the company saw stabilization in input costs in 2024 with tailwinds in fiber, resin, and energy.

The company's Powering Care growth strategy includes a focus on accelerating pioneering innovation to capture significant growth by investing in science and technology to satisfy unmet consumer needs.

The company is optimizing its margin structure by implementing initiatives and deploying technology and data analytics to create a fast, adaptable, integrated supply chain.

The company acknowledges the risk that if it fails to perfect or successfully assert its intellectual property rights (including in response to developments in artificial intelligence technologies), it may be less competitive.

The company's capital allocation approach prioritizes capital investments to drive growth, a strong and growing dividend, value-accretive acquisitions, and allocation of excess cash flow to share repurchases.

The company raised its dividend in 2024 by 3.4%, the 52nd consecutive annual increase in its dividend, demonstrating a commitment to returning value to shareholders.

Capital spending is expected to be approximately $1.0 to $1.2 billion in 2025, including incremental spending from the 2024 Transformation Initiative.

The company acknowledges the growing concern that carbon dioxide and other greenhouse gases in the atmosphere may have an adverse impact on global temperatures, weather patterns, water availability and quality, and the frequency and severity of extreme weather and natural disasters.

There is also increased focus, including by governmental and non-governmental organizations, investors and investment managers, customers, suppliers, consumers, our employees and other stakeholders on these and other sustainability matters.

The company continues to progress toward our 2030 Sustainability Goals which include elements that aim for reductions in greenhouse gas emissions, use of natural forest fibers, use of plastics and use of water in water-stressed regions.

Sales of our baby and child care products are highly correlated with birth rate trends. In recent years, birth rate declines in key countries, including China, South Korea and the U.S., have pressured category volume growth rates.

The retail landscape in many of our markets continues to evolve due to the rapid growth of e-commerce retailers, changing consumer preferences (as consumers increasingly shop online) and the increased presence of alternative retail channels, such as subscription services and direct-to-consumer businesses.

Our growth strategy depends in part on our ability to expand our international operations, including in emerging markets. Some of these markets have greater political, economic and currency volatility and greater vulnerability to infrastructure and labor disruptions.