Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 FY2025 Earnings Presentation
27 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 24, 2025
Slide 1: Earnings Release Q3 FY 2025 Results
EARNINGS RELEASE Q3 FY 2025 RESULTS April 24, 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 Q3 FY 2025
BUSINESS RESULTS Q3 FY 2025 bres
Slide 4: Q3 FY 2025 Highlights
Q3 FY 2025 HIGHLIGHTS Third quarter results heavily impacted by consumer and retailer volatility. Organic sales grew 1%, driven by pricing. 7 of 10 product categories grew or held organic sales for the quarter. Global aggregate value share modestly down, with 27 of our top 50 category/country combin
Slide 5: Q3 FY 2025 Results
Q3 FY 2025 RESULTS Q3 FY ’25 Organic Sales Growth +1% Organic Volume Growth +0% Core EPS Growth +1% Currency Neutral Core EPS Growth +3% Adjusted Free Cash Flow Productivity 75%
Slide 6: Organic Sales Growth
ORGANIC SALES GROWTH Q3 FY 2025 RESULTS • Organic volume was flat • Pricing contributed 1 point to organic sales growth • Mix was neutral 7% 4% 3% 3% 2% 2% 1% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25 Q2 FY '25 Q3 FY '25
Slide 7: Core EPS Growth
CORE EPS GROWTH Q3 FY 2025 RESULTS • Core gross margin -30 basis points • Core operating margin +90 basis points • Total productivity savings +280 basis points 17% 16% 11% 5% 1% 2% 2% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25 Q2 FY '25 Q3 FY '25
Slide 8: Currency Neutral Core EPS Growth
CURRENCY NEUTRAL CORE EPS GROWTH Q3 FY 2025 RESULTS • Core Gross margin ex-FX -10 basis points • Core Operating margin ex-FX +100 basis points 21% 18% 18% 6% 4% 3% 3% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25 Q2 FY '25 Q3 FY '25
Slide 9: Global Market Shares
GLOBAL MARKET SHARES TOP 50 Category/ Country Combinations 38 33 30 32 31 28 30 26 23 17 # Grew/Held Value Share Share data through February 2025
Slide 10: Segment Results Q3 FY 2025
SEGMENT RESULTS Q3 FY 2025
Slide 11: Beauty Segment
Q3 FY 2025 RESULTS BEAUTY SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 2% 1% -3% -8% • Topline: +3% pricing, +1% volume, -2% mix • Share: Global Skin Care value share decreased 0.8 points, Global Personal Care value share increased 0.6 points and Global Hair Care
Slide 12: Grooming Segment
Q3 FY 2025 RESULTS GROOMING SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 13% 6% 3% 1% • Topline: +2% pricing, +1% volume, flat mix • Share: Global Grooming value share decreased 0.5 points versus year ago. • Net Earnings: Productivity savings partially offset by n
Slide 13: Health Care Segment
Q3 FY 2025 RESULTS HEALTH CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 12% 8% 4% -1% • Topline: +3% mix, +1% pricing, -1% volume • Share: Global Oral Care value share increased 0.1 points and Global Personal Health Care value share increased 0.4 points versus
Slide 14: Fabric & Home Care Segment
Q3 FY 2025 RESULTS FABRIC & HOME CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 2% 0% 0% -1% • Topline: Flat volume, pricing and mix • Share: Global Fabric Care value share decreased 0.4 points and Global Home Care value share increased 0.7 points versus year a
Slide 15: Baby, Feminine & Family Care Segment
Q3 FY 2025 RESULTS BABY, FEMININE & FAMILY CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings -1% -2% -10% -12% • Topline: +1% mix, flat pricing, -2% volume • Share: Global Baby Care value share decreased 0.1 points, Global Feminine Care value share decreased 0.3 p
Slide 16: FY 2025 Guidance
FY 2025 GUIDANCE
Slide 17: FY 2025 Guidance: Sales
• Organic Sales Growth: +2% • Net Sales Growth: +0% FY 2025 – Includes a 2% negative impact from foreign exchange and acquisitions and divestitures GUIDANCE SALES FY ‘25 Organic Sales Growth (Update) +2% Net Sales Growth (Update) +0%
Slide 18: FY 2025 Guidance: Earnings Per Share
• Core EPS Growth: $6.72 to $6.82 • Outlooking $0.2bn after-tax headwind from commodities • Outlooking $0.2bn after-tax headwind from foreign exchange • 1-point foreign exchange headwind results in currency neutral core EPS growth of +3% to +5% • Prior fiscal year benefits from minor divestitures, m
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 +2% Net Sales Growth +0% Core EPS Growth +2% to +4% FY 2025 All-In EPS Growth +6% to +8% GUIDANCE Currency Neutral Core EPS Growth +3% to +5% SUMMARY Core Effective Tax Rate 20% Adjusted Free Cash Flow Productivity 90% Capital Spending, % of Sales 4-5% Di
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 • Additional geo-political disruptions NOT INCLUDED IN GUIDANCE • Major supply chain disruption or store closures • Significant tariff changes
Slide 22: Slide 22
Slide 23: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this release, 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-loo
Slide 24: 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 April 24, 2025 earnings call, associated slides and other materials and the reconciliation to the most closely related GAAP measure. We
Slide 25: Non-GAAP Measure Definitions
excluding the incremental current year impact of foreign exchange. We believe these non-GAAP measures provide a supplemental perspective to the Company’s operating efficiency over time. Adjusted free cash flow: Adjusted free cash flow is defined as operating cash flow less capital spending and exclu
Slide 26: Core EPS and Currency-neutral Core EPS
2. Core EPS and Currency-neutral Core EPS: Three Months Ended March 31 2025 2024 Diluted EPS $1.54 $1.52 Incremental restructuring — — Core EPS $1.54 $1.52 Percentage change vs. prior period Core EPS 1% Currency impact to earnings 0.03 Currency-Neutral Core EPS $1.57 Percentage change vs. prior peri
Slide 27: Core Operating Margin and Adjusted Free Cash Flow
4. Core operating margin and Currency-neutral Core operating margin: Three Months Ended March 31 2025 2024 Operating Margin 23.0% 22.1% Incremental restructuring — — Core Operating Margin 23.0% 22.1% Basis point change vs. prior year Core operating margin 90 Currency Impact to Margin — Currency-Neut
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