Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q1 2022 Earnings Presentation
28 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 19, 2021
Slide 1: Earnings Release Q1 FY 2022 Results
Earnings Release Q1 FY 2022 ResultsOctober 19, 2021
Slide 2: Strategic Priorities
StrategicPriorities
Slide 3: Immediate Priorities
IMMEDIATE PRIORITIES Ensuring the health and safety of our P&G colleagues around the world.Maximizing the availability of products we produce to help people and their families with their cleaning, health and hygiene needs.Supporting communities, relief agencies and people who are on the front lines
Slide 4: Strategic Focus Areas
SUPERIORITYTO WIN WITH CONSUMERS LEADING CONSTRUCTIVE DISRUPTION FOCUSED & AGILE ORGANIZATION STRATEGIC FOCUS AREAS PORTFOLIO: DAILY USE, PERFORMANCE DRIVES BRAND CHOICE PRODUCTIVITY TO FUEL INVESTMENTS Products Packaging Value New StandardOf Excellence Communication Retail Execution
Slide 5: Business Results
Business ResultsQ1 FY 2022
Slide 6: Highlights
Q1 FY 2022 HIGHLIGHTS Organic sales grew +4% driven by volume, pricing and mix. ‘ 9 of our 10 product categories grew organic sales versus year ago Aggregate market share growth of 50 basis points. pee : On track to deliver guidance on organic sales growth, core EPS growth, adjusted free cash flow p
Slide 7: Q1 FY22 Results
Organic Sales Growth Organic Volume Growth Core EPS Growth Adjusted Free CashFlow Productivity Q1 FY ‘22 +4% +2% -1% 92% Currency Neutral Core EPS Growth -3% Q1 FY 2022 RESULTS
Slide 8: Organic Sales Growth Results
Volume contributed 2 points of organic sales growth. Pricing and mix each added a point. ORGANIC SALES GROWTHQ1 FY 2022 RESULTS
Slide 9: Core EPS Growth Results
Core gross margin -370 basis pointsCore operating margin -260 basis pointsTotal productivity savings +180 basis points CORE EPS GROWTHQ1 FY 2022 RESULTS
Slide 10: Currency Neutral Core EPS Growth Results
Core gross margin ex-FX -390 basis pointsCore operating margin ex-FX -270 basis points CURRENCY NEUTRAL CORE EPS GROWTHQ1 FY 2022 RESULTS
Slide 11: Global Market Shares
GLOBAL MARKET SHARES Top 50 Category/Country Combinations # Grew/Held Value Share
Slide 12: Business Segment Results and Highlights
Business Segment Results and HighlightsQ1 FY 2022
Slide 13: Beauty Segment Results
Topline: +2% Pricing, Flat Mix and VolumeGlobal value share was flat versus year ago. Skin & Personal Care share increased 0.3 points and Hair Care share decreased 0.7 points versus year ago.Net Earnings: Driven by pricing and foreign exchange help, offset by geographic mix and commodities. Q1 FY 20
Slide 14: Beauty Highlights
Beauty Segment has delivered 24 consecutive quarters of organic sales growth through Q1.Hair Care organic sales increased low single digits versus year ago. Europe and North America growth was driven by premium innovation and pricing. This was partially offset by Greater China, where organic sales w
Slide 15: Grooming Segment Results
Q1 FY 2022 RESULTSGROOMING SEGMENT Topline: +2% Pricing, +1% Mix, +1% VolumeGlobal value share increased 1.1 points versus year ago. Both Global Shave share and Global Appliances share increased versus year ago.Net Earnings: Productivity savings and pricing were partially offset by negative mix.
Slide 16: Grooming Highlights
Shave Care organic sales grew mid-single digits, with growth across all sub-segments: Male, Female and Pre/Post Shave. Female Blades & Razors grew double digits in every region behind premium innovation.Appliances organic sales decreased mid-single digits, primarily driven by a strong base period wi
Slide 17: Health Care Segment Results
Topline: +1% Pricing, +3% Mix, +3% VolumeGlobal value share increased 0.2 points versus year ago. Global Oral Care share increased 0.9 points and Personal Health Care share was flat versus year ago.Net Earnings: Volume and productivity savings were partially offset by commodity costs and investments
Slide 18: Health Care Highlights
Oral Care organic sales increased low single digits versus year ago. North America and Europe grew organic sales mid-single digits, led by premium innovation.Personal Health Care organic sales grew double digits versus year ago. North America grew mid-teens and Latin America grew double digits with
Slide 19: Fabric & Home Segment Results
Topline: +2% Pricing, +2% Volume, +1% MixGlobal value share increased 1.3 points versus year ago, with over a point of share growth in both Fabric Care and Home Care.Net Earnings: Volume and pricing help were more than offset by significant commodity and freight costs and negative product mix. Q1 FY
Slide 20: Fabric & Home Highlights
Fabric Care organic sales grew high single digits versus year ago. Growth continues to be driven by premium innovation, with global Laundry Unit-Dose growing double digits and Fabric Enhancer Beads growing 30%. Home Care organic sales increased low single digits primarily driven by a COVID related c
Slide 21: Baby, Feminine and Family Care Segment Results
Topline: +2% Mix, +1% Volume, -1% PricingGlobal value share for the Baby, Feminine and Family Care segment increased 0.7 points versus year ago.Net Earnings: productivity and foreign exchange help were more than offset by significant commodity and freight costs. Q1 FY 2022 RESULTSBABY, FEMININE and
Slide 22: Baby, Feminine and Family Care Highlights
Baby Care organic sales increased mid-single digits. North America grew mid-single digits and Europe grew high single digits, more than offsetting a high single digit decline in Greater China, due to strong competitive activity.Feminine Care organic sales grew mid-single digits. Premium innovation d
Slide 23: FY 2022 Guidance
FY 2022 Guidance
Slide 24: FY 2022 Guidance: Sales
FY ‘22 Organic Sales Growth +2% to +4% All-in Sales Growth +2% to +4% FY 2022 GuidanceSALES Organic sales growth +2% to +4%All-in sales growth +2% to +4%FX is now expected to be neutral to sales for the year
Slide 25: FY 2022 Guidance: Earnings Per Share
FY ‘22 FY ’21 BasePeriod EPS Core EPS Growth +3% to +6% $5.66 All-in EPS Growth +6% to +9% $5.50 FY 2022 GuidanceEARNINGS PER SHARE Core EPS growth +3% to +6%$2.3bn after tax commodity & freight headwinds represent a $0.90 per share impact to FY ’22 Core EPS (16 percentage point headwind on Core EPS
Slide 26: FY 2022 Guidance: Cash Generation and Usage
FY 2022 GuidanceCASH GENERATION AND USAGE Adjusted Free Cash Flow Productivity: 90% Capital Spending, % Sales: 4% to 5%Dividends: >$8BDirect Share Repurchase: $7 to $9B
Slide 27: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant commodity cost increasesAdditional geo-political disruptions and economic volatility FY 2022 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
Slide 28: 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 based,