Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 2018 Earnings Presentation
24 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 23, 2018
Slide 1: Earnings Release Q2 2018 Results
* Earnings ReleaseQ2 2018 ResultsJanuary 23, 2018
Slide 2: Business Results Q2 FY 2018
* * Business ResultsQ2 FY 2018
Slide 3: Second Quarter FY 2018
* Second Quarter FY 2018 Organic Sales Growth Organic Volume Growth Core EPS Growth Adj. Free Cash Flow Productivity Q2 FY ‘18 +2% +2% +10% 91%
Slide 4: Results: Organic Sales Growth
* Oct – Dec 17 (Q2 FY 18) ResultsOrganic Sales Growth Sales growth was volume driven, with organic volume growing +2%.
Slide 5: Results: Core EPS Growth
* Oct – Dec 17 (Q2 FY 18) ResultsCore EPS Growth All-in sales and core operating profit each grew 3%. Impacts of the Tax Act added 4% to Core EPS growth and lower diluted shares outstanding contributed 2%.
Slide 6: Results: Currency-Neutral Core EPS Growth
* Oct – Dec 17 (Q2 FY 18) ResultsCurrency-Neutral Core EPS Growth
Slide 7: Business Segment Results and Highlights Q2 FY 2018
* * Business Segment Results and HighlightsQ2 FY 2018
Slide 8: Results: Beauty Segment
* +0% Pricing, +7% MixOrganic Sales: h Mid-single digits in Developed markets, h Double digits in Developing marketsGlobal value share declined 0.1 point versus year agoNet Earnings: Productivity improvements, volume, pricing and favorable product mix were partially offset by marketing investments a
Slide 9: Results: Beauty Highlights
* Hair Care organic sales grew low single digits versus year ago. Sales growth was driven by growth of all major brands – Pantene, Head & Shoulders, Herbal Essences and Rejoice. Developed markets were flat. Developing markets were up mid-single digits driven by premium innovation and pricing across
Slide 10: Results: Grooming Segment
* -4% Pricing, Flat Mix Organic Sales: i Low single digits in Developed markets, i Mid-single digits in Developing marketsGlobal value share declined 0.7 points versus year ago. Net Earnings: Productivity savings and currency tailwinds were more than offset by the pricing investments on the U.S. Sha
Slide 11: Results: Grooming Highlights
* * Grooming organic sales declined low single digits versus year ago due to softness in Shave Care partially offset by double digit growth in Appliances led by innovation. Developing markets declined mid-single digits due to mix impacts and trade inventory corrections. Developed markets decreased l
Slide 12: Results: Health Care Segment
* * -1% Pricing, +1% MixOrganic Sales: h Mid-single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share increased 0.1 point versus year agoNet Earnings: Volume growth, currency tailwinds and productivity improvements were partially offset by pricing and marketing
Slide 13: Results: Health Care Highlights
* * Oral Care organic sales grew low single digits versus year ago led by strong growth on Power toothbrush behind premium innovation and strong holiday merchandising plans. Developed markets increased mid-single digits led by premium innovation and Developing markets decreased low single digits due
Slide 14: Results: Fabric & Home Care Segment
* * -1% Pricing, Flat MixOrganic Sales: h Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share increased 0.2 points versus year agoNet Earnings: Volume growth and productivity improvements were more than offset by product and geographic mix hurt, curren
Slide 15: Results: Fabric & Home Care Highlights
* * Fabric Care organic sales grew low single digits versus year ago. Developed markets increased low single digits behind innovation driven volume growth across Laundry and Fabric Enhancers. Developing markets increased mid-single digits driven by innovation and pricing.Home Care organic sales grew
Slide 16: Results: Baby, Feminine & Family Care Segment
* * -1% Pricing, Flat MixOrganic Sales: h Low single digits in Developed markets, i Mid-single digits in Developing marketsGlobal value share declined 0.9 points versus year agoNet Earnings: Productivity savings were more than offset by commodity headwinds and value investments. Oct – Dec 17 (Q2 FY
Slide 17: Results: Baby, Feminine & Family Care Highlights
* * Baby Care organic sales declined mid-single digits versus year ago. Developed markets were down low single digits with consumer value investments on Taped Diapers and competitive activity in Europe partially offset by strong growth on Pants across markets. Developing markets were down high singl
Slide 18: FY 2018 Guidance
* * FY 2018 Guidance
Slide 19: FY 2018 Guidance: Sales
* FY ‘18 Organic Sales Growth +2% to +3% All-in Sales Growth Around 3% Organic sales up 2% to 3%Expect all-in sales of around 3%. This includes a modest net benefit from the combination of foreign exchange and acquisitions & divestitures. FY 2018 GuidanceSales
Slide 20: FY 2018 Guidance: Core EPS
* FY ‘18 Core EPS Growth 5% to 8% All-in EPS Growth -30% to -32% Raising the top end of Core EPS growth range to 5% to 8%Core effective tax rate range of 22.5 to 23%~2% EPS benefit due to discrete share repurchases and carryover benefit from the beauty transaction share exchange FY 2018 GuidanceCore
Slide 21: FY 2018 Guidance: Cash Generation & Usage
* Adjusted Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 5% to 5.5%Dividends: ~$7.5BDirect Share Repurchase: $6 to $8B FY 2018 GuidanceCash Generation & Usage
Slide 22: FY 2018 Guidance: Potential Headwinds Not Included
* Significant strengthening of the U.S. DollarFurther commodity cost increasesFurther political and economic volatilitySignificant deceleration of market growth rates FY 2018 GuidancePotential Headwinds Not Included in Guidance
Slide 23: P&G
P&G
Slide 24: 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 base