Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q4 2024 Earnings Presentation
35 slides from Procter & Gamble Company (the)'s earnings presentation, Jul 30, 2024
Slide 1: Earnings Release FY & Q4 FY 2024 Results
Earnings Release FY & Q4 FY 2024 Results July 30, 2024
Slide 2: Strategy & Focus Areas
STRATEGY & FOCUS AREAS INTEGRATED AREAS OF FOCUS GROWTH STRATEGY SUPPLY CHAIN PORTFOLIO PERFORMANCE DRIVES BRAND CHOICE ENVIRONMENTAL SUSTAINABILITY SUPERIORITY ORGANIZATION TO WIN WITH CONSUMERS EMPOWERED • AGILE ACCOUNTABLE DIGITAL ACUMEN CONSTRUCTIVE DISRUPTION PRODUCTIVITY EMPLOYEE TO FUEL INVES
Slide 3: Business Results FY 2024
Business Results FY 2024 3
Slide 4: FY 2024 Highlights
FY 2024 HIGHLIGHTS Fiscal ’24 was another strong year. Execution of our integrated strategy enabled the company to meet or exceed going-in guidance ranges for organic sales growth, core EPS growth, cash productivity and cash return to shareowners. Organic sales grew 4%; sixth consecutive year of 4%
Slide 5: FY 2024 Results
FY 2024 RESULTS FY ‘24 Organic Sales Growth +4% Organic Volume Growth Flat Core EPS Growth +12% Currency Neutral Core EPS Growth +16% Adjusted Free Cash Flow Productivity 105%
Slide 6: Organic Sales Growth Annual Progression
ORGANIC SALES GROWTH ANNUAL PROGRESSION • Pricing contributed 4 points to organic sales growth. • Mix was neutral. • Organic volume was in line with prior year. 7% 7% 6% 6% 5% 4% FY '19 FY '20 FY '21 FY '22 FY '23 FY '24
Slide 7: Core EPS Growth Annual Progression
CORE EPS GROWTH ANNUAL PROGRESSION • Core Gross margin +360 basis points • Core Operating margin +170 basis points • Total productivity savings +280 basis points 13% 12% 11% 7% 3% 2% FY '19 FY '20 FY '21 FY '22 FY '23 FY '24
Slide 8: Currency Neutral Core EPS Growth Annual Progression
CURRENCY NEUTRAL CORE EPS GROWTH ANNUAL PROGRESSION • Core Gross margin ex-FX +420 basis points • Core Operating margin ex-FX +250 basis points 17% 16% 15% 11% 11% 5% FY '19 FY '20 FY '21 FY '22 FY '23 FY '24
Slide 9: Global Market Shares
GLOBAL MARKET SHARES TOP 50 Category/ Country Combinations 38 33 30 32 31 30 26 23 17 # Grew/Held Value Share Share data through May 2024
Slide 10: Returning Value to Shareowners
RETURNING VALUE TO SHAREOWNERS CASH RETURNED TO OWNERS ADJUSTED FREE via Dividends & DIVIDENDS SHARE CASH FLOW Share PAYMENTS REPURCHASE PRODUCTIVITY Repurchase $9.3 $5.0 105% $146 Bn FY 2024 Bn FY 2024 FY 2024 Bn P10Y
Slide 11: Business Results Q4 FY 2024
Business Results Q4 FY 2024 11
Slide 12: Q4 FY 2024 Results
Q4 FY 2024 RESULTS Q4 FY ‘24 Organic Sales Growth +2% Organic Volume Growth +2% Core EPS Growth +2% Currency Neutral Core EPS Growth +6% Adjusted Free Cash Flow Productivity 148%
Slide 13: Q4 Organic Sales Growth
ORGANIC SALES GROWTH Q4 FY 2024 RESULTS • Organic volume contributed 2 points to organic sales growth. • Pricing contributed 1 point to organic sales growth. • Mix was neutral. 8% 7% 7% 7% 5% 4% 3% 2% Q1 FY '23 Q2 FY '23 Q3 FY '23 Q4 FY '23 Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24
Slide 14: Q4 Core EPS Growth
CORE EPS GROWTH Q4 FY 2024 RESULTS • Core Gross margin +140 basis points • Core Operating margin -100 basis points • Total productivity savings +250 basis points 17% 16% 13% 11% 2% -2% 3% -4% Q1 FY '23 Q2 FY '23 Q3 FY '23 Q4 FY '23 Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24
Slide 15: Q4 Currency Neutral Core EPS Growth
CURRENCY NEUTRAL CORE EPS GROWTH Q4 FY 2024 RESULTS • Core Gross margin ex-FX +180 basis points • Core Operating margin ex-FX -60 basis points 22% 21% 18% 18% 13% 7% 6% 5% Q1 FY '23 Q2 FY '23 Q3 FY '23 Q4 FY '23 Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24
Slide 16: Segment Results Q4 FY 2024
Segment Results Q4 FY 2024 (rc
Slide 17: Beauty Segment
Q4 FY 2024 RESULTS BEAUTY SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 3% 1% -14% -17% • Topline: +3% pricing, +1% volume, flat mix • Share: Global Skin & Personal Care value share increased 0.1 points and Global Hair Care value share decreased 0.2 points versus y
Slide 18: Grooming Segment
Q4 FY 2024 RESULTS GROOMING SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 7% 2% 3% -10% • Topline: +5% pricing, +2% volume, flat mix • Share: Global Grooming value share increased 0.5 points versus year ago. • Net Earnings: Pricing and productivity savings more tha
Slide 19: Health Care Segment
Q4 FY 2024 RESULTS HEALTH CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 11% 9% 4% 1% • Topline: +2% pricing, +1% volume, +1% mix • Share: Global Oral Care value share decreased 0.4 points and Global Personal Health Care value share increased 0.3 points versus
Slide 20: Fabric & Home Care Segment
Q4 FY 2024 RESULTS FABRIC & HOME CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 2% 3% -5% -5% • Topline: +3% volume, +1% mix, -1% pricing • Share: Global Fabric Care value share decreased 1 point and Global Home Care value share increased 0.6 points versus year
Slide 21: Baby, Feminine & Family Care Segment
Q4 FY 2024 RESULTS BABY, FEMININE & FAMILY CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings -1% -1% -12% -11% • Topline: flat pricing/mix, -1% volume • Share: Global Baby Care and Global Family Care value share decreased 0.7 points and Global Feminine Care share
Slide 22: FY 2025 Guidance
FY 2025 Guidance 22
Slide 23: FY 2025 Guidance: Sales
• 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 2025 GUIDANCE SALES FY ‘25 Organic Sales Growth +3% to +5% Net Sales Growth +2% to +4%
Slide 24: FY 2025 Guidance: Earnings Per Share
• Core EPS Growth: +5% to +7% • Outlooking $0.3bn after-tax headwind from commodities • Outlooking $0.2bn after-tax headwind from foreign exchange • Prior fiscal year benefits from minor divestitures and tax that won’t repeat represents an additional $0.10 to $0.12 headwind to EPS • 1-point foreign
Slide 25: FY 2025 Guidance: Cash Generation and Usage
Adjusted Free Cash Flow Productivity 90% FY 2025 4-5% GUIDANCE Capital Spending, % Sales CASH Dividends ~$10bn GENERATION AND USAGE Direct Share Repurchase $6 to $7bn
Slide 26: 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% FY 2025 All-In EPS Growth +10% to +12% GUIDANCE +6% to +8% SUMMARY Currency Neutral Core EPS Growth Core Effective Tax Rate 20% to 21% Adjusted Free Cash Flow Productivity 90% Capital Spend
Slide 27: FY 2025 Guidance Potential Headwinds Not Included
• Significant deceleration of market growth rates • Significant, additional currency FY 2025 weakness GUIDANCE • Significant commodity cost increases POTENTIAL HEADWINDS • Major supply chain disruption or NOT INCLUDED IN GUIDANCE store closures • Additional geo-political disruptions and economic vol
Slide 28: ESG Resources
ESG RESOURCES ESG FOR INVESTORS WEBSITE – pginvestor.com/esg • Climate • Equality & Inclusion • Commitment to Governance • Waste • Advocating for Equality • Risk Oversight & Committee • Water • Policies & Practices Structure • Nature • Community Impact • Proxy Statement • TCFD • Employee Representat
Slide 29: 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
Slide 30: Regulation G Reconciliation of Non-GAAP Measures
The Procter & Gamble Company Regulation G Reconciliation of Non-GAAP Measures The following provides definitions of the non-GAAP measures used in Procter & Gamble's July 30, 2024 earnings call, associated slides and other materials and the reconciliation to the most closely related GAAP measure. We
Slide 31: Non-GAAP Measure Definitions
to core earnings includes only this transitional impact. It does not include the ongoing impacts of the lower U.S. statutory rate on pre-tax earnings. We do not view the above items to be part of our sustainable results, and their exclusion from core earnings measures provides a more comparable meas
Slide 32: Organic Sales Growth Prior Quarters and Fiscal Years
Organic Sales Growth Prior Quarters Acquisition/ Net Sales Foreign Exchange Divestiture Organic Sales Total Company Growth Impact Impact/Other* Growth Q1 FY 2023 1% 6% —% 7% Q2 FY 2023 (1)% 6% —% 5% Q3 FY 2023 4% 4% (1)% 7% Q4 FY 2023 5% 4% (1)% 8% Q1 FY 2024 6% 1% —% 7% Q2 FY 2024 3% 1% —% 4% Q3 FY
Slide 33: Core EPS and Currency-Neutral Core EPS
Core EPS and Currency-Neutral Core EPS Fiscal Year Ended June 30 2024 2023 Diluted Net EPS $6.02 $5.90 Incremental restructuring 0.15 — Intangible asset impairment 0.42 — Core EPS $6.59 $5.90 Percentage change vs. prior period Core EPS 12% Currency Impact to Earnings 0.23 Currency-Neutral Core EPS $
Slide 34: Core EPS Growth Guidance and Core Gross Margin
Core EPS Growth and Currency-neutral EPS Guidance Diluted EPS Impact of Incremental Core EPS Currency-neutral EPS Total Company Growth Non-Core Items Growth Impact of FX Growth FY 2025 +10% to +12% -5% +5% to +7% 1% +6% to +8% (Estimate) 3. Core gross margin and Currency-neutral Core gross margin: T
Slide 35: Adjusted Free Cash Flow and Productivity
5. Adjusted free cash flow and Adjusted free cash flow productivity (dollar amounts in millions): Three Months Ended June 30, 2024 Operating Capital Adjusted Free Adjustments to Net Earnings Adjusted Free Cash Cash Flow Spending Cash Flow Net Earnings Net Earnings(1) as Adjusted Flow Productivity $5
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