Investment in Capabilities and Advertising Efficiency
Company is accelerating investments in omnichannel, RGM, digital, data/AI and supply chain; A&P dollars were up ~5% year-over-year on a dollar basis while A&P as a percent of sales was slightly down, reflecting focus on optimization and efficiency.
Delivered Growth Across Key Financial Metrics in 2025
Company reported growth in organic sales, net sales, gross profit, base-business EPS and free cash flow in 2025 despite headwinds; completed 2025 strategy adding $5.0 billion in sales.
Q4 Momentum — Organic Growth and Sequential Improvement
Exited 2025 with improved momentum: organic sales growth in all four categories in Q4 and sequential improvement versus Q3 in every division except North America; underlying organic sales in Q4 were in excess of 3% when excluding the private-label exit.
Strong Hill's Performance
Hill's delivered strong results: ex-private-label growth cited as in excess of 5%, underlying volume positive (about +2% when adjusting for a ~360 basis-point private-label drag), with prescription diet and therapeutic segments gaining share.
Emerging Markets Strength
Emerging markets grew broadly in the quarter (about +4.5% organic growth), with Latin America notably strong (Mexico and Brazil both high-single-digit organic growth) and solid improvement across Asia and Africa.
Record Operating Cash Flow and Strong Balance Sheet
Delivered record operating cash flow of $4.2 billion in 2025, improved free cash flow and low leverage, providing balance sheet flexibility for reinvestment, dividends, buybacks and disciplined M&A.
Prime 100 Acquisition Performing Ahead of Plan
Prime 100 (fresh pet food acquisition) is performing ahead of expectations and is being integrated while management evaluates broader applicability of learnings.