The strategic need for investment to strengthen the long-term health and competitiveness of our brands, the short-term need to manage through significant cost increases, and the ongoing need to drive balanced top- and bottom-line growth, including margin expansion, underscore the importance of productivity.
We have developed a strong productivity muscle over the last decade as we delivered two $10 billion savings programs. Productivity is part of our DNA now, which will help us address some of the challenges we face. We remain fully committed to cost and cash productivity in all facets of our business. No area of cost is left untouched.
Productivity is integrated into our strategy,
across our business—
Materials
Manufacturing
Overhead
Ad Spend &
Promotion
Working
Capital
For example, as COVID-19 supply chain challenges ease and we reach a better balance of supply and demand, we will have an increased opportunity to implement cost savings projects in our manufacturing operations. As we leverage digital tools and automation, there will be more opportunities to focus employees on the higher-order work of serving consumers. And, as we continue to integrate data and analytics and artificial intelligence, brand teams will be working to make our marketing investments even more efficient and effective to deliver improved demand creation at equal or lower cost.
Each business is driving productivity up and down their income statement and across their balance sheet, and we remain fully committed to productivity as a core driver of balanced top- and bottom-line growth and strong cash generation. We cannot let up here. Productivity will remain a significant part of our work, especially now.
VARIOUS STATEMENTS IN THIS ANNUAL REPORT, including estimates, projections, objectives and expected results, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are generally identified by the words “believe,” “expect,” “anticipate,” “intend,” “opportunity,” “plan,” “project,” “will,” “should,” “could,” “would,” “likely” and similar expressions. Forward-looking statements are based on current assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements, including the risks and uncertainties discussed in Item 1A – Risk Factors of the Form 10-K included in this Annual Report. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise publicly any forward-looking statements, except as required by law.