Headline results are a beat, but outlook a mixed bag Q4 organic sales +4.9% (consensus +3.8%) and FY organic sales +4.5% (consensus +4.3%) is comfortably ahead of expectations, and is the strongest top-line growth rate for the Group in nine years. The 13 billion euro brands in aggregate grew sales 6.4%. FY underlying operating margin -10bps (consensus -20bps) is also not as bad as feared. Pricing accelerated to +4.9% in Q4 to recover inflation. Underlying EPS of €2.62 (consensus €2.49) is a 5% beat. The dividend is raised 3%. The outlook is for FY22 organic sales growth of 4.5-6.5% and the operating margin to contract by 140-240bps (consensus assumes +4.1% organic sales and a flat operating margin in FY22). The margin guidance is significantly worse than expected, but this metric should recover from FY23. Management expects “significant input cost inflation” in FY22, which will be H1 weighted. The new organisational structure is expected to generate €600m in cost savings over the next two years. The company completed €3bn of share buybacks in FY21 and has announced a further €3bn to be spent over FY22-23. Category performance Beauty & Personal Care Q4 organic sales +6.2%. Prestige Beauty grew double digit in FY21 (this is broadly in-line with L’Oreal’s +16% LFL reported last night). Margins were flat here over the FY. Home Care Q4 organic sales +5.0%. Home & Hygiene continues to be above the pre-pandemic level. The operating margin was -110bps over the FY. Foods & Refreshment Q4 organic sales +3.2%. The operating margin was +40bps over the FY.