Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q1 2025 Earnings Presentation
28 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 18, 2024
Slide 1: Earnings Release Q1 FY 2025 Results
EARNINGS RELEASE Q1 FY 2025 RESULTS October 18, 2024
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 Q1 FY 2025
BUSINESS RESULTS Q1 FY 2025 bres
Slide 4: Q1 FY 2025 Highlights
Q1 FY 2025 HIGHLIGHTS First quarter results enable us to maintain our guidance ranges for Fiscal 2025. Organic sales grew 2%, driven by volume and pricing. 8 of 10 product categories grew organic sales for the quarter. Global aggregate value share grew 10 basis points, with 28 of our top 50 category
Slide 5: Q1 FY 2025 Results
Q1 FY 2025 RESULTS Q1 FY ’25 Organic Sales Growth +2% Organic Volume Growth +1% Core EPS Growth +5% Currency Neutral Core EPS Growth +4% Adjusted Free Cash Flow Productivity 82%
Slide 6: Organic Sales Growth
ORGANIC SALES GROWTH Q1 FY 2025 RESULTS • Pricing contributed 1 point to organic sales growth • Mix was neutral • Organic volume grew 1 point 7% 4% 3% 2% 2% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25
Slide 7: Core EPS Growth
CORE EPS GROWTH Q1 FY 2025 RESULTS • Core gross margin Flat • Core operating margin +30 basis points • Total productivity savings +230 basis points 17% 16% 11% 5% 2% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 FY '25
Slide 8: Currency Neutral Core EPS Growth
CURRENCY NEUTRAL CORE EPS GROWTH Q1 FY 2025 RESULTS • Core Gross margin ex-FX +10 basis points • Core Operating margin ex-FX -10 basis points 21% 18% 18% 6% 4% Q1 FY '24 Q2 FY '24 Q3 FY '24 Q4 FY '24 Q1 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 August 2024
Slide 10: Segment Results Q1 FY 2025
SEGMENT RESULTS Q1 FY 2025
Slide 11: Beauty Segment
Q1 FY 2025 RESULTS BEAUTY SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 0% -2% -11% -13% • Topline: +1% pricing, volume flat, -3% mix • Share: Global Skin Care value share decreased 0.4 points, Global Personal Care value share increased 0.4 points, and Global Hair
Slide 12: Grooming Segment
Q1 FY 2025 RESULTS GROOMING SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 5% 4% 3% 1% • Topline: +5% volume, +1% pricing, -3% mix • Share: Global Grooming value share increased 0.9 points versus year ago. • Net Earnings: Volume growth and pricing partially offset b
Slide 13: Health Care Segment
Q1 FY 2025 RESULTS HEALTH CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 8% 9% 4% -1% • Topline: +4% mix, +1% pricing, -1% volume • Share: Global Oral Care value share increased 0.5 points and Global Personal Health Care value share decreased 0.1 points versus
Slide 14: Fabric & Home Care Segment
Q1 FY 2025 RESULTS FABRIC & HOME CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 6% 3% 3% 1% • Topline: +1% volume, +1% mix, pricing flat • Share: Global Fabric Care value share decreased 0.2 points and Global Home Care value share increased 0.6 points versus ye
Slide 15: Baby, Feminine & Family Care Segment
Q1 FY 2025 RESULTS BABY, FEMININE & FAMILY CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 0% 0% -1% -1% • Topline: flat pricing/mix, -1% volume • Share: Global Baby Care value share decreased 0.3 points, Global Feminine Care value share decreased 0.5 points, an
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 • Currency neutral core EPS growth of +5% to +7% (expect foreign exchange to be neutral) • Prior fiscal year benefits from minor divestitures and tax that won’t repeat represents an additional $0.10 to $0.12 FY 202
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 +5% to +7% 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 October 18, 2024 earnings call, associated slides and other materials and the reconciliation to the most closely related GAAP measure.
Slide 26: 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 27: Core EPS and Currency-neutral Core EPS
2. Core EPS and Currency-neutral Core EPS: Three Months Ended September 30 2024 2023 Diluted EPS $1.61 $1.83 Incremental restructuring 0.32 — Core EPS $1.93 $1.83 Percentage change vs. prior period Core EPS 5% Currency impact to earnings (0.02) Currency-Neutral Core EPS $1.91 Percentage change vs. p
Slide 28: Core Operating Margin and Adjusted Free Cash Flow
4. Core operating margin and Currency-neutral Core operating margin: Three Months Ended September 30 2024 2023 Operating Margin 26.7% 26.4% Incremental restructuring — — Core Operating Margin 26.7% 26.4% Basis point change vs. prior year Core operating margin 30 Currency Impact to Margin (0.4)% Curr
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