“Combined headwinds from these items are now estimated at $3.3 billion after tax, roughly equal to the challenge we faced in fiscal '22, a 23 percentage point headwind to EPS growth or roughly $1.33 per share as we start the year.”

In context

“ty in the fiscal year ahead. This rings true again as we enter fiscal 2023. The combined year-on-year profit headwinds from foreign exchange rates, freight costs, materials, fuel, energy and wage inflation are an even greater challenge in fiscal '23 than they were in fiscal '22. Based on current spot prices and supply contracts, we estimate commodities, raw materials and packaging material costs to be a $2.1 billion after-tax headwind in fiscal 2023. Freight costs are expected to be higher in fiscal '23 compared to the average cost paid in fiscal '22 by roughly $300 million after tax. Foreign exchange rates have moved sharply against us even since our presentation at the Deutsche Bank Conference in June. We now expect foreign exchange to be a $900 million after-tax headwind in fiscal '23. Combined headwinds from these items are now estimated at $3.3 billion after tax, roughly equal to the challenge we faced in fiscal '22, a 23 percentage point headwind to EPS growth or roughly $1.33 per share as we start the year. As Jon said in his review of our strategies, we're working to mitigate the impact of these cost headwinds through a combination of innovation to create and extend the superiority of our brands, productivity in all aspects of our work, and pricing. With this context, I'll move to the key guidance metrics. We expect global market value growth in our categories to moderate back towards a range of around 3% to 4% with strong price contribution offset by modest decreases in unit volume. With the strength of our brands and commitment to keep investing in the business, we continue to expect to grow at or above underlying market levels, building aggregate market share globally. This leads to guidance for organic sales growth in the range of 3% to 5% for the fiscal '23. On the bottom line, we expe”