24 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 18, 2024
Slide 1: Earnings Release Q1 FY 2025 Results
EARNINGSRELEASE Q1 FY 2025 RESULTS October 18, 2024
Slide 2: Strategy & Focus Areas
STRATEGY & FOCUS AREAS INTEGRATED GROWTH STRATEGY AREAS OF FOCUS ENVIRONMENTAL SUSTAINABILITY DIGITAL ACUMEN EMPLOYEE VALUE EQUATION SUPPLY CHAIN SUPERIORITY TO WIN WITH CONSUMERS PRODUCTIVITY TO FUEL INVESTMENTS ORGANIZATION EMPOWERED • AGILE ACCOUNTABLE PORTFOLIO PERFORMANCE DRIVES BRAND CHOICE CO
Slide 3: Business Results Q1 FY 2025
BUSINESS RESULTS Q1 FY 2025
Slide 4: Highlights
Q1 FY 2025 HIGHLIGHTS First quarter results enable us to maintain our guidance ranges for Fiscal 2025. Organic sales grew 2%, driven by volume and pricing. 8 of 10 product categories grew organic sales for the quarter. Global aggregate value share grew 10 basis points, with 28 of our top 50 category
Slide 5: Results Q1 FY '25
Q1 FY 2025 RESULTS Q1 FY ’25 Organic Sales Growth +2% Organic Volume Growth +1% Core EPS Growth +5% Currency Neutral Core EPS Growth +4% Adjusted Free Cash Flow Productivity 82%
Slide 6: Organic Sales Growth Results
ORGANIC SALES GROWTHQ1 FY 2025 RESULTS Pricing contributed 1 point to organic sales growth Mix was neutral Organic volume grew 1 point
Slide 7: Core EPS Growth Results
CORE EPS GROWTHQ1 FY 2025 RESULTS Core gross margin Core operating margin Total productivity savings Flat +30 basis points +230 basis points
Slide 8: Currency Neutral Core EPS Growth Results
CURRENCY NEUTRAL CORE EPS GROWTHQ1 FY 2025 RESULTS Core Gross margin ex-FX Core Operating margin ex-FX +10 basis points -10 basis points
Slide 9: Global Market Shares
GLOBAL MARKET SHARES Top 50 Category/ Country Combinations # Grew/Held Value Share Share data through August 2024
Slide 10: Segment Results
SEGMENT RESULTS Q1 FY 2025
Slide 11: Results: Beauty Segment
Q1 FY 2025 RESULTSBEAUTY SEGMENT Topline: +1% pricing, volume flat, -3% mix Share: Global Skin Care value share decreased 0.4 points, Global Personal Care value share increased 0.4 points, and Global Hair Care value share decreased 0.6 points versus year ago. Net Earnings: Productivity savings more
Slide 12: Results: Grooming Segment
Q1 FY 2025 RESULTSGROOMING SEGMENT Topline: +5% volume, +1% pricing, -3% mix Share: Global Grooming value share increased 0.9 points versus year ago. Net Earnings: Volume growth and pricing partially offset by negative geographic mix.
Slide 13: Results: Health Care Segment
Q1 FY 2025 RESULTSHEALTH CARE SEGMENT Topline: +4% mix, +1% pricing, -1% volume Share: Global Oral Care value share increased 0.5 points and Global Personal Health Care value share decreased 0.1 points versus year ago. Net Earnings: Favorable product mix and marketing productivity partially offset b
Slide 14: Results: Fabric & Home Care Segment
Q1 FY 2025 RESULTSFABRIC & HOME CARE SEGMENT Topline: +1% volume, +1% mix, pricing flat Share: Global Fabric Care value share decreased 0.2 points and Global Home Care value share increased 0.6 points versus year ago. Net Earnings: Sales growth and productivity savings partially offset by marketing
Slide 15: Results: Baby, Feminine & Family Care Segment
Q1 FY 2025 RESULTSBABY, FEMININE & FAMILY CARE SEGMENT Topline: flat pricing/mix, -1% volume Share: Global Baby Care value share decreased 0.3 points, Global Feminine Care value share decreased 0.5 points, and Global Family Care value share was flat versus year ago. Net Earnings: Increased productiv
Slide 16: FY 2025 Guidance
FY 2025 GUIDANCE
Slide 17: FY 2025 Guidance: Sales
FY 2025 GUIDANCESALES Organic Sales Growth: +3% to +5% Net Sales Growth: +2% to +4% Includes a 1% negative impact from foreign exchange and acquisitions and divestitures FY ‘25 Organic Sales Growth (Maintain) +3% to +5% Net Sales Growth (Maintain) +2% to +4%
Slide 18: FY 2025 Guidance: Earnings Per Share
FY 2025 GUIDANCEEARNINGS PER SHARE Core EPS Growth: +5% to +7% Outlooking $0.2bn after-tax headwind from commodities Currency neutral core EPS growth of +5% to +7% (expect foreign exchange to be neutral) Prior fiscal year benefits from minor divestitures and tax that won’t repeat represents an addit
Slide 19: FY 2025 Guidance: Cash Generation and Usage
FY 2025 GUIDANCECASH GENERATION AND USAGE Adjusted Free Cash Flow Productivity (Maintain) 90% Capital Spending, % Sales (Maintain) 4-5% Dividends (Maintain) ~$10bn Direct Share Repurchase (Maintain) $6 to $7bn
Slide 20: FY 2025 Guidance Summary
METRIC FY 2025 GUIDANCE Organic Sales Growth +3% to +5% Net Sales Growth +2% to +4% Core EPS Growth +5% to +7% All-In EPS Growth +10% to +12% Currency Neutral Core EPS Growth +5% to +7% Core Effective Tax Rate 20% to 21% Adjusted Free Cash Flow Productivity 90% Capital Spending, % of Sales 4-5% Divi
Slide 21: Potential Headwinds Not Included in Guidance
FY 2025 GUIDANCEPOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE Significant deceleration of market growth rates Significant currency weakness Significant commodity cost increases Major supply chain disruption or store closures Additional geo-political disruptions and economic volatility
Slide 22: ESG Resources: ESG for Investors Website
ESG RESOURCESESG FOR INVESTORS WEBSITE – pginvestor.com/esg Climate Waste Water Nature TCFD SASB CDP GRI 102 Equality & Inclusion Policies & Practices Community Impact Employee Representation Board Representation EEO-1 Commitment to Governance Risk Oversight & Committee Structure Proxy Statement Gov
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Slide 24: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this 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 based, are "forwar