Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2020 Earnings Presentation
24 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 23, 2020
Slide 1: Earnings Release Q2 FY 2020
Earnings Release Q2 FY 2020January 23, 2020
Slide 2: Business Results
Business ResultsQ2 FY 2020
Slide 3: Q2 FY 2020 Highlights
G2EY 2020 HIGHLIGHTS Increasing the outlook for the fiscal year across cash after strong first-half results. Organic sales grew +5% driven by volume, prici 9 of 10 global categories grew organic sales.” All channel consumption remained ahead of ul aggregate market share growth. Focus remains on exec
Slide 4: Q2 Fiscal Year 2020 Results Summary
Q2 Fiscal Year 2020 Organic Sales Growth Organic Volume Growth Core EPS Growth Free Cash Flow Productivity Q2 FY ‘20 +5% +3% +14% 100% Currency Neutral Core EPS Growth +15%
Slide 5: Results: Organic Sales Growth
Q2 FY 2020 RESULTSORGANIC SALES GROWTH Organic sales were driven by volume, pricing and mix. Organic volume up +3%, pricing +1% and mix +1%.
Slide 6: Results: Core EPS Growth
Q2 FY 2020 RESULTSCORE EPS GROWTH Core gross margin +200 basis pointsCore operating margin +190 basis pointsTotal productivity savings +220 basis points
Slide 7: Results: Currency-Neutral Core EPS Growth
Q2 FY 2020 RESULTSCURRENCY-NEUTRAL CORE EPS GROWTH Core gross margin ex-FX +210 basis pointsCore operating margin ex-FX +190 basis points
Slide 8: Business Segment Results and Highlights
Business Segment Results and HighlightsQ2 FY 2020
Slide 9: Results: Beauty Segment
+2% Pricing, +1% MixGlobal value share declined 0.2 versus year agoNet Earnings: Volume growth, pricing and positive mix were partially offset by brand communication investments, production line start-up costs and currency headwinds. Q2 FY 2020 RESULTSBEAUTY SEGMENT
Slide 10: Results: Beauty Highlights
Hair Care organic sales grew mid-single digits versus year ago. Europe, Latin America and Greater China grew high single digits and North America grew low single digits. Growth driven by innovation led volume growth, premium mix and strong retail execution. Skin & Personal Care organic sales grew do
Slide 11: Results: Grooming Segment
+2% Pricing, flat Mix Global value share increased 0.3 points versus year ago. Net Earnings: Volume growth, pricing and productivity savings were partially offset by currency headwinds and negative geographic mix. Q2 FY 2020 RESULTSGROOMING SEGMENT
Slide 12: Results: Grooming Highlights
Grooming organic sales increased mid-single digits versus year ago. Shave Care organic sales grew low single digits. NA Shave grew organic sales low single digits behind premium innovation and go-to-market execution partially offset by the continued decline in shaving incidents and competitive activ
Slide 13: Results: Health Care Segment
+1% Pricing, +1% MixGlobal value share increased 0.3 points versus year agoNet Earnings: Innovation driven volume growth, pricing and productivity savings were partially offset by currency headwinds and brand communication investments. Q2 FY 2020 RESULTSHEALTH CARE SEGMENT
Slide 14: Results: Health Care Highlights
Oral Care organic sales increased mid-single digits versus year ago. North America and Greater China both grew high single digits driven by Power toothbrushes, premium toothpaste innovation and pricing. Europe grew mid-single digits with strong growth on Power toothbrushes. Latin America grew double
Slide 15: Results: Fabric & Home Segment
+1% Pricing, +1% MixGlobal value share increased 0.8 points versus year agoNet Earnings: Innovation-driven volume growth, pricing, productivity savings and commodity tailwinds were partially offset by investments in brand communication. Q2 FY 2020 RESULTSFABRIC & HOME SEGMENT
Slide 16: Results: Fabric & Home Highlights
Fabric Care organic sales grew mid-single digits versus year ago. Broad based growth led by premium innovation-driven volume growth across laundry and fabric enhancers. Greater China delivered double digit organic sales growth and North America and Europe delivered mid-single digit organic sales gro
Slide 17: Results: Baby, Feminine and Family Care Segment
Flat Pricing, +1% MixGlobal value share declined 0.5 points versus year agoNet Earnings: Productivity savings and commodity tailwinds were partially offset by brand communication investments, lower margin product mix hurt and currency headwinds. Q2 FY 2020 RESULTSBABY, FEMININE and FAMILY CARE SEGME
Slide 18: Results: Baby, Feminine and Family Care Highlights
Baby Care organic sales decreased low single digits with strength of premium tier offerings and Pants form more than offset by continued softness on mid-tier and value tier diapers due to competitive activity and category contraction in some markets. Asia Pacific region was also impacted by retailer
Slide 19: FY 2020 Guidance
FY 2020 Guidance
Slide 20: FY 2020 Guidance: Sales
FY ‘20 Organic Sales Growth (increased) +4% to +5% All-in Sales Growth (increased) +4% to +5% Increased organic sales growth guidance to +4% to +5%Increased all-in sales growth to +4% to +5%Includes a modest negative impact from foreign exchange, which is largely offset by a positive net impact from
Slide 21: FY 2020 Guidance: Earnings Per Share
FY ‘20 Core EPS Growth (increased) +8% to +11% All-in EPS Growth (increased) +235% to +245% Increased Core EPS growth to +8% to +11% Core effective tax rate range of 17% to 18% Increased all-in EPS of +235% to +245% with the Gillette Shave Care carrying value adjustment in the base period (Q4). Impa
Slide 22: FY 2020 Guidance: Cash Generation and Usage
Increased Adj. Free Cash Flow Productivity: 100% Capital Spending, % Sales: 4.5% to 5.0%Dividends: Over $7.5BIncreased Direct Share Repurchase: $7 to $8B FY 2020 GuidanceCASH GENERATION AND USAGE
Slide 23: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant commodity cost increasesAdditional geo-political disruptions and economic volatility FY 2020 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
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 based,