Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2025 Earnings Presentation
29 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 22, 2025
Slide 1: Earnings Release Q2 FY 2025 Results
EARNINGS RELEASE Q2 FY 2025 RESULTS January 22, 2025
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 ACROSS OUR BU
Slide 3: Business Results
BUSINESS RESULTS Q2 FY 2025 bres
Slide 4: Q2 FY 2025 Highlights
Q2 FY 2025 HIGHLIGHTS Second quarter results enable us to maintain our guidance ranges for Fiscal 2025. Organic sales grew 3%, driven by volume and mix. 9 of 10 product categories grew organic sales for the quarter. Global aggregate value share was flat, with 28 of our top 50 category/country combin
Slide 5: Q2 FY 2025 Results
Q2 FY 2025 RESULTS Q2 FY ’25 Organic Sales Growth +3% Organic Volume Growth +2% Core EPS Growth +2% Currency Neutral Core EPS Growth +3% Adjusted Free Cash Flow Productivity 84%
Slide 6: Organic Sales Growth
ORGANIC SALES GROWTH Q2 FY 2025 RESULTS • Organic volume grew 2 points • Mix contributed 1 point to organic sales growth • Pricing was neutral 7% 4% 3% 3% 2% 2% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25 Q2 FY '25
Slide 7: Core EPS Growth
CORE EPS GROWTH Q2 FY 2025 RESULTS • Core gross margin -30 basis points • Core operating margin -80 basis points • Total productivity savings +260 basis points 17% 16% 11% 5% 2% 2% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25 Q2 FY '25
Slide 8: Currency Neutral Core EPS Growth
CURRENCY NEUTRAL CORE EPS GROWTH Q2 FY 2025 RESULTS • Core Gross margin ex-FX -20 basis points • Core Operating margin ex-FX -50 basis points 21% 18% 18% 6% 4% 3% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25 Q2 FY '25
Slide 9: Global Market Shares
GLOBAL MARKET SHARES TOP 50 Category/ Country Combinations 38 33 30 32 31 28 28 26 23 17 # Grew/Held Value Share Share data through November 2024
Slide 10: Segment Results
SEGMENT RESULTS Q2 FY 2025
Slide 11: Beauty Segment
Q2 FY 2025 RESULTS BEAUTY SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 2% 0% -10% -9% • Topline: +2% pricing, flat volume and mix • Share: Global Skin Care value share decreased 0.7 points, Global Personal Care value share increased 0.8 points and Global Hair Care
Slide 12: Grooming Segment
Q2 FY 2025 RESULTS GROOMING SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 4% 4% 2% 2% • Topline: +2% volume, +1% pricing, -1% mix • Share: Global Grooming value share increased 0.3 points versus year ago. • Net Earnings: Volume growth and productivity savings parti
Slide 13: Health Care Segment
Q2 FY 2025 RESULTS HEALTH CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 5% 5% 3% 0% • Topline: +2% mix, +1% pricing, flat volume • Share: Global Oral Care value share increased 0.1 points and Global Personal Health Care value share decreased 0.1 points versus
Slide 14: Fabric & Home Care Segment
Q2 FY 2025 RESULTS FABRIC & HOME CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 3% 2% -1% -1% • Topline: +2% volume, +1% mix, pricing flat • Share: Global Fabric Care value share increased 0.1 points and Global Home Care value share increased 0.3 points versus
Slide 15: Baby, Feminine & Family Care Segment
Q2 FY 2025 RESULTS BABY, FEMININE & FAMILY CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 4% 4% 2% 2% • Topline: volume +4%, -1% pricing, flat mix • Share: Global Baby Care value share was in line with prior year, Global Feminine Care value share decreased 0.4
Slide 16: FY 2025 Guidance
FY 2025 GUIDANCE
Slide 17: FY 2025 Guidance: Sales
• Organic Sales Growth: +3% to +5% • Net Sales Growth: +2% to +4% FY 2025 – Includes a 1% negative impact from foreign exchange and acquisitions and divestitures GUIDANCE SALES FY ‘25 Organic Sales Growth (Maintain) +3% to +5% Net Sales Growth (Maintain) +2% to +4%
Slide 18: FY 2025 Guidance: Earnings Per Share
• Core EPS Growth: +5% to +7% • Outlooking $0.2bn after-tax headwind from commodities • Outlooking $0.3bn after-tax headwind from foreign exchange • 2-point foreign exchange headwind results in currency neutral core EPS growth of +7% to +9% • Prior fiscal year benefits from minor divestitures and ta
Slide 19: FY 2025 Guidance: Cash Generation and Usage
FY 2025 Adjusted Free Cash Flow Productivity (Maintain) 90% GUIDANCE Capital Spending, % Sales (Maintain) 4-5% CASH GENERATION ~$10bn Dividends (Maintain) AND USAGE 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% FY 2025 All-In EPS Growth +10% to +12% GUIDANCE Currency Neutral Core EPS Growth +7% to +9% SUMMARY Core Effective Tax Rate 20% to 21% Adjusted Free Cash Flow Productivity 90% Capital Spend
Slide 21: Potential Headwinds Not Included in Guidance
• Significant deceleration of market growth rates FY 2025 • Significant currency weakness GUIDANCE POTENTIAL • Significant commodity cost increases HEADWINDS • Major supply chain disruption or NOT INCLUDED store closures IN GUIDANCE • Additional geo-political disruptions and economic volatility
Slide 22: ESG Resources
ESG RESOURCES ESG FOR INVESTORS WEBSITE – pginvestor.com/esg • Climate • Equality & Inclusion • Commitment to Governance • Waste • Policies & Practices • Risk Oversight & Committee • Water • Community Impact Structure • Nature • Employee Representation • Proxy Statement • TCFD • Board Representation
Slide 23: Slide 23
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
Slide 25: 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 January 22, 2025 earnings call, associated slides and other materials and the reconciliation to the most closely related GAAP measure.
Slide 26: Non-GAAP Measure Definitions
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 measure of year-on-year results. These items are also excluded when evaluating senior management in determining their at- risk compensation. Organic sales
Slide 27: Organic Sales Growth Reconciliation
1. Organic sales growth: Acquisition & Three Months Ended Net Sales Foreign Exchange Divestiture Organic Sales December 31, 2024 Growth Impact Impact/Other* Growth Beauty —% 1% 1% 2% Grooming 1% 1% —% 2% Health Care 2% —% 1% 3% Fabric Care & Home Care 2% —% 1% 3% Baby, Feminine & Family Care 3% —% 1
Slide 28: Core EPS and Currency-Neutral Core EPS
2. Core EPS and Currency-neutral Core EPS: Three Months Ended December 31 2024 2023 Diluted EPS $1.88 $1.40 Incremental restructuring — 0.02 Intangible asset impairment — 0.42 Core EPS $1.88 $1.84 Percentage change vs. prior period Core EPS 2% Currency impact to earnings 0.02 Currency-Neutral Core E
Slide 29: Core Gross and Operating Margin Reconciliation
3. Core gross margin and Currency-neutral Core gross margin: Three Months Ended December 31 2024 2023 Gross Margin 52.4% 52.7% Incremental restructuring — 0.1% Core Gross Margin 52.4% 52.7% Basis point change vs. prior year Core gross margin (30) Currency Impact to Margin 0.1% Currency-Neutral Core
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