Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 FY2021 Earnings Presentation
29 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 20, 2021
Slide 1: Earnings Release Q3 FY 2021 Results
Earnings Release Q3 FY 2021 ResultsApril 20, 2021
Slide 2: Strategic Priorities
Strategic PrioritiesQ3 FY 2021
Slide 3: Immediate Priorities
IMMEDIATE PRIORITIES Ensuring the health and safety of P&G colleagues 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 t
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: Business Results
Business ResultsQ3 FY 2021
Slide 6: Highlights
Q3 FY 2021 ofecens 108 HIGHLIGHTS *, We're confident the strategies and priorities we've oat acllowwind Pears ar during the COVID crisis continue to be the righto ones. Seas Sheth led t another quarter of strong results. Organic sales grew +4% driven by pricing and os e Oe Fiscal year to date, throu
Slide 7: Results: Q3 FY21 Key Metrics
Organic Sales Growth Organic Volume Growth Core EPS Growth Free CashFlow Productivity Q3 FY ‘21 +4% In-line +8% 106% Currency Neutral Core EPS Growth +8% Q3 FY 2021 RESULTS
Slide 8: Results: Organic Sales Growth
Q3 FY 2021 RESULTSORGANIC SALES GROWTH Q3 Organic sales were driven by pricing and mix.Organic volume was in-line, pricing +2% and mix +2%.
Slide 9: Results: Core EPS Growth
Core gross margin +30 basis pointsCore operating margin In-lineTotal productivity savings +210 basis points Q3 FY 2021 RESULTSCORE EPS GROWTH
Slide 10: Results: Currency-Neutral Core EPS Growth
Q3 FY 2021 RESULTSCURRENCY-NEUTRAL CORE EPS GROWTH Core gross margin ex-FX +80 basis pointsCore operating margin ex-FX +30 basis points
Slide 11: Global Market Shares
GLOBAL MARKET SHARES Top 50 Category/Country Combinations # Grew/Held Value Share 17 23 26 33 30 30
Slide 12: Returning Value to Shareowners
131 YEARS Of dividend payments $135+ BILLION* Value returned to P&Gshareholders (past decade)* 65 YEARS Of dividend increases Dividend per share over time: *Through FY’20, comprised of dividend payments and share repurchases/exchanges combined. Returning Value to Shareowners
Slide 13: Business Segment Results and Highlights
Business Segment Results and HighlightsQ3 FY 2021
Slide 14: Results: Beauty Segment
+2% Pricing, +3% MixGlobal value share decreased 0.5 points versus year ago. Hair Care share is flat and Skin & Personal Care share is down versus year ago.Net Earnings: Volume growth, pricing and productivity savings were partially offset by increased commodity costs. Q3 FY 2021 RESULTSBEAUTY SEGME
Slide 15: Results: Beauty Highlights
Beauty Segment has delivered 22 consecutive quarters of organic sales growth through Q3.Hair Care organic sales increased high single digits versus year ago. North America, Greater China and Latin America growth was driven by premium innovation. Greater China also had a one-time impact from a lower
Slide 16: Results: Grooming Segment
Q3 FY 2021 RESULTSGROOMING SEGMENT +2% Pricing, +2% Mix Global value share decreased 0.3 points versus year ago. Sub-category mix reduced total Grooming share. Global Shave share was flat versus year ago. Global Appliances share increased 3.3 points versus year ago.Net Earnings: Pricing and producti
Slide 17: Results: Grooming Highlights
Shave Care organic sales were unchanged versus year ago. High single digit growth in female blades & razors was offset by market softness in male blades & razors due to COVID related consumption decline, particularly in North America and Europe. Greater China organic sales grew behind innovation and
Slide 18: Results: Health Care Segment
Flat Pricing, +3% MixGlobal value share increased 2.0 points versus year ago, with share growth in both Oral Care and Personal Health Care.Net Earnings: Productivity savings were more than offset by lower Respiratory volume due to a historically low Cough Cold Flu season, brand communication investm
Slide 19: Results: Health Care Highlights
Oral Care organic sales increased high single digits versus year ago, with broad based growth. North America and Europe organic sales increased high single digits behind premium paste and power toothbrush innovation. Greater China grew organic sales around 20% driven by premium paste and power brush
Slide 20: Results: Fabric & Home Segment
+2% Pricing, +2% MixGlobal value share increased 0.7 points versus year ago, with share growth in both Fabric Care and Home Care.Net Earnings: Strong premium innovation driven volume growth, productivity savings and pricing were partially offset by investments in brand communication. Q3 FY 2021 RESU
Slide 21: Results: Fabric & Home Highlights
Fabric Care organic sales grew low single digits versus year ago. North America delivered high single digit organic sales growth led by premium innovation, investments in brand communication and strong retail execution. Greater China Fabric Care increased more than 20% driven by premium innovation a
Slide 22: Results: Baby, Feminine, and Family Care Segment
+2% Pricing, +1% MixGlobal value share declined 0.6 points versus year ago. FemCare is growing share versus year ago, offset by share decline in Baby Care and Family Care.Net Earnings: Positive sales mix behind premium innovation, pricing and productivity savings were partially offset by volume decl
Slide 23: Results: Baby, Feminine, and Family Care Highlights
Baby Care organic sales decreased mid-single digits. North America declined low single digits driven by retailer inventory de-stocking and consumption trends. Europe organic sales declined high single digits driven by retailer inventory de-stocking in the current period and COVID related retailer in
Slide 24: FY 2021 Guidance
FY 2021 Guidance
Slide 25: FY 2021 Guidance: Sales
FY ‘21 Organic Sales Growth +5% to +6% All-in Sales Growth +5% to +6% Maintained organic sales growth guidance of +5% to +6%Maintained all-in sales growth of +5% to +6%Foreign exchange is expected to be neutral for the year FY 2021 GuidanceSALES
Slide 26: FY 2021 Guidance: Earnings Per Share
FY ‘21 FY ’20 BasePeriod EPS Core EPS Growth +8% to +10% $5.12 All-in EPS Growth +8% to +10% $4.96 Maintained Core EPS growth of +8% to +10% Maintained All-in EPS growth of +8% to +10%Includes non-core charges of $0.16 per share from early debt retirementCore Effective Tax Rate range of 18% to 19% F
Slide 27: FY 2021 Guidance: Cash Generation and Usage
Increased Free Cash Flow Productivity: Over 100%Capital Spending % Sales: 4% to 5%Dividends: Over $8BnIncreased Share Repurchase: ~$11Bn FY 2021 GuidanceCASH GENERATION AND USAGE
Slide 28: FY 2021 Guidance: 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 29: 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,