Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q4 FY2024 Earnings Presentation
29 slides from Procter & Gamble Company (the)'s earnings presentation, Jul 30, 2024
Slide 1: Earnings Release FY & Q4 FY 2024 Results
EarningsRelease FY & Q4 FY 2024 ResultsJuly 30, 2024
Slide 2: Strategy & Focus Areas
STRATEGY & FOCUS AREAS INTEGRATED GROWTH STRATEGY SUPERIORITY TO WIN WITH CONSUMERS PRODUCTIVITY TO FUEL INVESTMENTS ORGANIZATION EMPOWERED • AGILE ACCOUNTABLE PORTFOLIO PERFORMANCE DRIVES BRAND CHOICE CONSTRUCTIVE DISRUPTION ACROSS OUR BUSINESS ENVIRONMENTAL SUSTAINABILITY DIGITAL ACUMEN EMPLOYEE V
Slide 3: Business Results FY 2024
3 BusinessResults FY 2024
Slide 4: 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% or better organic g
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
Pricing contributed 4 points to organic sales growth. Mix was neutral. Organic volume was in line with prior year. ORGANIC SALES GROWTHANNUAL PROGRESSION
Slide 7: Core EPS Growth Annual Progression
Core Gross margin Core Operating margin Total productivity savings CORE EPS GROWTHANNUAL PROGRESSION +360 basis points +170 basis points +280 basis points
Slide 8: Currency Neutral Core EPS Growth Annual Progression
CURRENCY NEUTRAL CORE EPS GROWTHANNUAL PROGRESSION Core Gross margin ex-FX Core Operating margin ex-FX +420 basis points +250 basis points
Slide 9: Global Market Shares
GLOBAL MARKET SHARES Top 50 Category/ Country Combinations # Grew/Held Value Share Share data through May 2024
Slide 10: Returning Value to Shareowners
RETURNING VALUE TO SHAREOWNERS CASH RETURNED TO OWNERS via Dividends & Share Repurchase $146 Bn P10Y ADJUSTED FREE CASH FLOW PRODUCTIVITY 105% FY 2024 SHARE REPURCHASE $5.0 Bn FY 2024 DIVIDENDS PAYMENTS $9.3 Bn FY 2024
Slide 11: Business Results Q4 FY 2024
11 BusinessResults Q4 FY 2024
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: 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. ORGANIC SALES GROWTHQ4 FY 2024 RESULTS
Slide 14: Core EPS Growth Q4 FY 2024 Results
Core Gross margin Core Operating margin Total productivity savings CORE EPS GROWTHQ4 FY 2024 RESULTS +140 basis points -100 basis points +250 basis points
Slide 15: Currency Neutral Core EPS Growth Q4 FY 2024 Results
CURRENCY NEUTRAL CORE EPS GROWTHQ4 FY 2024 RESULTS Core Gross margin ex-FX Core Operating margin ex-FX +180 basis points -60 basis points
Slide 16: Segment Results Q4 FY 2024
16 SegmentResults Q4 FY 2024
Slide 17: Beauty Segment
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 year ago. Net Earnings: Productivity savings and pricing more than offset by negative product mix, marketing investments and unf
Slide 18: Grooming Segment
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 than offset by negative product mix, marketing investments & unfavorable foreign exchange. Q4 FY 2024 RESULTSGROOMING SEGMENT
Slide 19: Health Care Segment
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 year ago. Net Earnings: Sales growth, productivity savings and pricing partially offset by unfavorable mix due to lower incidence
Slide 20: Fabric & Home Care Segment
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 ago. Net Earnings: Productivity savings and lower commodities more than offset by marketing investments and unfavorable mix. Q4 FY 2024
Slide 21: Baby, Feminine & Family Care Segment
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 decreased 0.4 points versus year ago. Net Earnings: Lower commodities more than offset by lower organic sales, marketing investments and wage inflation
Slide 22: FY 2025 Guidance
22 FY 2025 Guidance
Slide 23: 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 +3% to +5% Net Sales Growth +2% to +4%
Slide 24: FY 2025 Guidance: Earnings Per Share
FY 2025 GUIDANCEEARNINGPER 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
Slide 25: FY 2025 Guidance: Cash Generation and Usage
FY 2025 GUIDANCECASH GENERATION AND USAGE Adjusted Free Cash Flow Productivity 90% Capital Spending, % Sales 4-5% Dividends ~$10bn Direct Share Repurchase $6 to $7bn
Slide 26: FY 2025 Guidance: Summary
FY 2025 GUIDANCESUMMARY 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 +6% to +8% Core Effective Tax Rate 20% to 21% Adjusted Free Cash Flow Productivity 90% Capital Spendi
Slide 27: Potential Headwinds Not Included in Guidance
FY 2025 GUIDANCEPOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE Significant deceleration of market growth rates Significant, additional currency weakness Significant commodity cost increases Major supply chain disruption or store closures Additional geo-political disruptions and economic volatility
Slide 28: ESG Resources
ESG RESOURCESESG FOR INVESTORS WEBSITE – pginvestor.com/esg Climate Waste Water Nature TCFD SASB CDP GRI 102 UN SDGs Equality & Inclusion Advocating for Equality Policies & Practices Community Impact Employee Representation Board Representation EEO-1 Commitment to Governance Risk Oversight & Committ
Slide 29: 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 "forward-looking statements" withi