Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q1 FY2021 Earnings Presentation
26 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 20, 2020
Slide 1: Earnings Release Q1 FY 2021 Results
Earnings Release Q1 FY 2021 ResultsOctober 20, 2020
Slide 2: Business Results Q1 FY 2021
Business ResultsQ1 FY 2021
Slide 3: Immediate Priorities
IMMEDIATE PRIORITIES Ensuring the health and safety of P&G employees 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 of th
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: Q1 FY 2021 Highlights
OEY 2021 HIGHLIGHTS Strong start to the fiscal year enabling us to increa: sales growth, core EPS growth, adjusted free ca cash return to shareholders. Organic sales grew +9% driven by volume, pri 9 of 10 global categories grew organic sales m Aggregate market share growth of 30 basis po Focus remai
Slide 6: Q1 Fiscal Year 2021 Key Metrics
Q1 Fiscal Year 2021 Organic Sales Growth Organic Volume Growth Core EPS Growth Adjusted Free Cash Flow Productivity Q1 FY ‘21 +9% +7% +19% 95% Currency Neutral Core EPS Growth +22%
Slide 7: Results: Organic Sales Growth
Q1 FY 2021 RESULTSORGANIC SALES GROWTH Q1 Organic sales were driven by volume, pricing and mix. Organic volume up +7%, pricing +1% and mix +1%.
Slide 8: Results: Core EPS Growth
Core gross margin +140 basis pointsCore operating margin +300 basis pointsTotal productivity savings +230 basis points Q1 FY 2021 RESULTSCORE EPS GROWTH
Slide 9: Results: Currency-Neutral Core EPS Growth
Q1 FY 2021 RESULTSCURRENCY-NEUTRAL CORE EPS GROWTH Core gross margin ex-FX +170 basis pointsCore operating margin ex-FX +350 basis points
Slide 10: Business Segment Results and Highlights
Business Segment Results and HighlightsQ1 FY 2021
Slide 11: Results: Beauty Segment
+1% Pricing, flat MixGlobal value share decreased 0.4 points versus year agoNet Earnings: Volume growth, pricing help, and productivity savings were partially offset by slower growth on premium SK-II brand and currency headwinds. Q1 FY 2021 RESULTSBEAUTY SEGMENT
Slide 12: Beauty Highlights
Beauty Segment has delivered 20 consecutive quarters of organic sales growth through Q1.In Q1, Hair Care organic sales increased high single digits versus year ago. North America and Greater China each grew double digits driven by premium product innovation and strong retail execution. Latin America
Slide 13: Results: Grooming Segment
+2% Pricing, flat Mix Global value share decreased 1.8 points versus year ago. Sub-category mix reduced total Grooming share. Global Shave share decreased 0.6 points versus year ago. Global Appliances share increased 1.1 points versus year ago.Net Earnings: Volume growth and pricing were mostly offs
Slide 14: Grooming Highlights
Shave Care organic sales were flat, as high single digit growth in female blades & razors was offset by market softness in male blades & razors due to pandemic-related consumption decline. North America grew sales low single digits with volume growth from premium innovation. Europe declined mid-sing
Slide 15: Results: Health Care Segment
+1% Pricing, +2% MixGlobal value share increased 1.4 points versus year agoNet Earnings: Volume growth, positive mix, pricing and productivity savings were partially offset by investments in brand communication and currency headwinds. Q1 FY 2021 RESULTSHEALTH CARE SEGMENT
Slide 16: Health Care Highlights
Oral Care organic sales increased mid-teens versus year ago. North America sales increased mid-teens behind premium paste and power toothbrush innovation and strong retail execution, including improved run rates in the professional channel. Europe organic sales grew mid-teens led by strong innovatio
Slide 17: Results: Fabric & Home Segment
Flat Pricing, +4% MixGlobal value share increased 1.2 points versus year agoNet Earnings: Strong premium innovation-driven volume growth, productivity savings and commodity tailwinds were partially offset by investments in brand communication and currency headwinds. Q1 FY 2021 RESULTSFABRIC & HOME S
Slide 18: Fabric & Home Highlights
Fabric Care organic sales grew high single digits versus year ago. North America delivered strong high teens organic sales growth led by premium innovation-driven volume growth across Laundry and Fabric Enhancers, investments in brand communication, strong retail execution and market growth. Europe
Slide 19: Results: Baby, Feminine and Family Care Segment
+1% Pricing, flat MixGlobal value share decreased 0.4 points versus year agoNet Earnings: Volume growth, pricing, productivity savings and commodity tailwinds were partially offset by investments in brand communication and currency headwinds. Q1 FY 2021 RESULTSBABY, FEMININE, and FAMILY CARE SEGMENT
Slide 20: Baby, Feminine and Family Care Highlights
Baby Care organic sales declined low single digits. North America grew low single digits driven by retailer inventory re-stocking and consumption growth across premium products, pants and wipes. Greater China and Europe declined low single digits driven by market contraction. Latin America declined
Slide 21: FY 2021 Guidance
FY 2021 Guidance
Slide 22: FY 2021 Guidance: Sales
FY ‘21 Organic Sales Growth (increased) +4% to +5% All-in Sales Growth (increased) +3% to +4% Increased organic sales growth guidance to +4% to +5%Increased all-in sales growth to +3% to +4%Includes a one percent negative impact from foreign exchange. FY 2021 GuidanceSALES
Slide 23: FY 2021 Guidance: Earnings Per Share
FY ‘21 FY ’20 Base EPS used for growth rates Core EPS Growth (increased) +5% to +8% $5.12 All-in EPS Growth (updated) +4% to +9% $4.96 Increased Core EPS growth to +5% to +8% Updated All-in EPS of +4% to +9%Includes non-core charges of $0.15 to $0.20 per share from early debt retirementCore Effectiv
Slide 24: FY 2021 Guidance: Cash Generation and Usage
Increased Free Cash Flow Productivity: Around 95% Capital Spending % Sales: 4% to 5%Dividends: $8BIncreased Direct Share Repurchase: $7 to $9Bn FY 2021 GuidanceCASH GENERATION AND USAGE
Slide 25: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant commodity cost increasesAdditional geo-political disruptions and economic volatility FY 2021 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
Slide 26: 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,