Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q1 FY2018 Earnings Presentation
24 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 20, 2017
Slide 1: Earnings Release Q1 2018 Results
* Earnings ReleaseQ1 2018 ResultsOctober 20, 2017
Slide 2: Business Results Q1 FY 2018
* * Business ResultsQ1 FY 2018
Slide 3: First Quarter 2018 Results Summary
* First Quarter 2018 Organic Sales Growth Organic Volume Growth Core EPS Growth Free Cash Flow Productivity Q1 ‘18 +1% +1% +6% 87%
Slide 4: Results: Organic Sales Growth
* Jul – Sep 17 (Q1 FY 18) ResultsOrganic Sales Growth Sales growth was volume driven, with organic volume growing +1%.
Slide 5: Results: Core EPS Growth
* Jul – Sep 17 (Q1 FY 18) ResultsCore EPS Growth Q1 Core operating margin declined 40bps versus prior year. Productivity improvements contributed 190 basis points of margin benefit offset by commodity headwinds, unfavorable mix, and reinvestments.
Slide 6: Results: Currency-Neutral Core EPS Growth
* Jul – Sep 17 (Q1 FY 18) ResultsCurrency-Neutral Core EPS Growth
Slide 7: Business Segment Results and Highlights Q1 FY 2018
* * Business Segment Results and HighlightsQ1 FY 2018
Slide 8: Results: Beauty Segment
* +1% Pricing, +4% MixOrganic Sales: h Low single digits in Developed markets, h High single digits in Developing marketsGlobal value share declined 0.2 points versus year agoNet Earnings: Productivity improvements, pricing and favorable product mix were partially offset by commodity headwinds. Jul
Slide 9: Results: Beauty Highlights
* Hair Care organic sales grew low single digits versus year ago. Developed markets were down low single digits due to continued competitive activity in the U.S. market. Developing markets were up mid-single digits driven by premium innovation and pricing led by growth across markets.Skin & Personal
Slide 10: Results: Grooming Segment
* -3% Pricing, -2% Mix Organic Sales: i High single digits in Developed markets, i Low single digits in Developing marketsGlobal value share declined 0.8 points versus year ago. Net Earnings: Productivity savings on cost of goods sold were more than offset by unfavorable mix and the pricing investme
Slide 11: Results: Grooming Highlights
* * Grooming organic sales declined mid-single digits versus year ago due to softness in Shave Care partially offset by double digit growth in Appliances led by innovation. Developing market declined low single digits due to mix impacts and increased competitive activity. Developed markets decreased
Slide 12: Results: Health Care Segment
* * +1% Pricing, Flat MixOrganic Sales: i Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share declined 0.3 points versus year agoNet Earnings: Volume growth and productivity improvements were more than offset by a base period gain from a minor brand di
Slide 13: Results: Health Care Highlights
* * Oral Care organic sales grew low single digits versus year ago led by strong growth on Power toothbrush behind innovation and increased marketing support. Developed markets increased low single digits led by premium innovation and Developing markets increased mid-single digits led by growth in C
Slide 14: Results: Fabric & Home Care Segment
* * Flat Pricing, Flat MixOrganic Sales: h Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share was in-line with year agoNet Earnings: Productivity improvements, volume growth and a gain from a small divestiture were partially offset by currency headwin
Slide 15: Results: Fabric & Home Care Highlights
* * Fabric Care organic sales grew low single digits versus year ago. Developed markets increased low single digits behind innovation driven volume growth across Laundry and Fabric Enhancers. Developing markets increased low single digits driven by innovation and pricing partially offset by the drag
Slide 16: Results: Baby, Feminine & Family Care Segment
* * -1% Pricing, Flat MixOrganic Sales: Flat in Developed markets, i Low single digits in Developing marketsGlobal value share declined 0.4 points versus year agoNet Earnings: Productivity savings were more than offset by commodity headwinds, unfavorable mix and value investments. Jul – Sep 17 (Q1 F
Slide 17: Results: Baby, Feminine & Family Care Highlights
* * Baby Care organic sales declined mid-single digits versus year ago. Developed markets were down mid-single digits with consumer value investments on Taped Diapers and competitive activity in Europe partially offset by strong growth on Pants across markets. Developing markets were down mid-single
Slide 18: FY 2018 Guidance
* * FY 2018 Guidance
Slide 19: FY 2018 Guidance: Sales
* FY ‘18 Organic Sales Growth +2% to +3% Currency, acquisitions & divestitures and India Goods & Services Tax Implementation 0% to 0.5% All-in Sales Growth Around 3% Organic sales up 2% to 3%Expect all-in sales of around 3% FY 2018 GuidanceSales
Slide 20: FY 2018 Guidance: Core EPS
* FY ‘18 Core EPS Growth 5% to 7% All-in EPS Growth -26% to -28% Core EPS growth of 5% to 7%Core operating profit growth to be primary driver of Core EPSExpect net impact of interest expense, interest income, and other non-operating income to be a net headwind on core EPS growthCore effective tax ra
Slide 21: FY 2018 Guidance: Cash Generation & Usage
* Adjusted Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 5% to 5.5%Dividends: ~$7.5BDirect Share Repurchase: $4 to $7B FY 2018 GuidanceCash Generation & Usage
Slide 22: FY 2018 Guidance: Potential Headwinds Not Included
* Significant strengthening of the U.S. DollarFurther commodity cost increasesFurther political and economic volatilitySignificant deceleration of market growth rates FY 2018 GuidancePotential Headwinds Not Included in Guidance
Slide 23: P&G
P&G
Slide 24: Forward Looking Statements
* Forward Looking Statements Certain statements in this release or presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are base