Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 FY2019 Earnings Presentation
25 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 23, 2019
Slide 1: Earnings Release Q3 FY 2019 Results
Earnings ReleaseQ3 FY 2019 ResultsApril 23, 2019
Slide 2: Business Results Q3 Fiscal Year 2019
Business ResultsQ3 Fiscal Year 2019
Slide 3: Q3 Fiscal Year 2019 Highlights
Q3 Fiscal Year 2019 HIGHLIGHTS
Slide 4: Q3 Fiscal Year 2019 Organic Sales, Volume, Core EPS, Free Cash Flow
Q3 Fiscal Year 2019 Organic Sales Growth Organic Volume Growth Core EPS Growth Free Cash Flow Productivity Q3 FY ‘19 +5% +2% +6% 100% Currency Neutral Core EPS Growth +15%
Slide 5: Organic Sales Results
Jan – Mar 19 (Q3 FY 19) ResultsORGANIC SALES RESULTS Organic sales were driven by volume, pricing and mix. Organic volume up +2%, pricing +2% and mix +1%.
Slide 6: Core EPS Growth
Jan – Mar 19 (Q3 FY 19) ResultsCORE EPS GROWTH Core gross margin unchanged vs. year ago Core gross margin ex-FX +60 basis pointsCore operating margin -60 basis pointsCore operating margin ex-Fx +40 basis pointsTotal productivity savings +260 basis points
Slide 7: Currency-Neutral Core EPS Growth
Jan – Mar 19 (Q3 FY 19) ResultsCURRENCY-NEUTRAL CORE EPS GROWTH Constant currency core operating margin increased 40 basis points. Excluding currency and commodities, core operating margin was up 110 points.
Slide 8: We're Committed to Returning Cash to Our Shareholders
WE’RE COMMITTED TO RETURNING CASH TO OUR SHAREHOLDERS. 129 63 $135° YEARS YEARS BILLION’ Of dividend Of dividend Value returned to payments increases shareholders (past decade)* Dividend per share over time: $2.90 $1.64 Fyo9 FYIO FY FYI2Z FYIS FYI4 FYIS FYI6 FYI7 FYI8 FYI9 “Through dividend payments
Slide 9: Business Segment Results and Highlights Q3 FY 2019
Business Segment Results and HighlightsQ3 FY 2019
Slide 10: Beauty Segment
+2% Pricing, +4% MixOrganic Sales: h Mid-single digits in Developed markets, h Double digits in Developing marketsGlobal value share decreased 0.1 points versus year agoNet Earnings: Volume growth, pricing, cost of goods sold savings and tax help were partially offset by brand communication investme
Slide 11: Beauty Highlights
Hair Care organic sales grew mid-single digits versus year ago. Developed markets increased low single digits behind innovation led volume growth and strong retail execution. Developing markets were up mid-single digits driven by premium innovation, devaluation pricing and strong retail execution.Sk
Slide 12: Grooming Segment
+2% Pricing, Flat Mix Organic Sales: i Low single digits in Developed markets, h Low single in Developing marketsGlobal value share declined 1.2 points versus year ago. Global Shave Care value share declined 0.9 points and Appliances value share declined 1.1 points.Net Earnings: Devaluation pricing,
Slide 13: Grooming Highlights
Grooming organic sales declined low single digits versus year ago. Shave Care sales were down low single digits in Developed markets with innovation growth offset by competitive activity. Developing market sales grew low single digits behind devaluation pricing and investments in strong retail execu
Slide 14: Health Care Segment
+2% Pricing, +1% MixOrganic Sales: h Mid-single digits in Developed markets, h High single digits in Developing marketsGlobal value share increased 0.7 points versus year agoNet Earnings: Volume growth, pricing, productivity savings and tax help were partially offset by currency headwinds, negative
Slide 15: Health Care Highlights
Oral Care organic sales increased mid-single digits versus year ago. Developed markets grew mid-single digits with growth in power toothbrushes, premium toothpaste innovation and pricing. Developing markets grew mid-single digits due to strong results on manual brush innovation in LA region and deva
Slide 16: Fabric & Home Segment
+1% Pricing, +1% MixOrganic Sales: h Mid-single digits in Developed markets, h Double digits in Developing marketsGlobal value share increased 0.4 points versus year agoNet Earnings: Innovation-driven volume growth, pricing, productivity improvements and tax help were partially offset by more profit
Slide 17: Fabric & Home Highlights
Fabric Care organic sales grew mid-single digits versus year ago. Developed markets increased mid-single digits behind innovation-driven volume growth across laundry and fabric enhancers and incremental marketing investments. Developing markets increased high single digits driven by premium innovati
Slide 18: Baby, Feminine and Family Care Segment
+3% Pricing, -1% MixOrganic Sales: h Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share declined 0.2 points versus year agoNet Earnings: Pricing, productivity savings and tax help were partially offset by negative channel and product mix, commodity an
Slide 19: Baby, Feminine and Family Care Highlights
Baby Care organic sales declined mid-single digits in Developed markets driven by softness on mid-tier and value tier diapers and volume reductions following price increases. Developing markets grew low single digits driven by strong growth on pants form and premium taped diapers and devaluation pri
Slide 20: FY 2019 Guidance
FY 2019 Guidance
Slide 21: FY 2019 Guidance: Sales
FY ‘19 Organic Sales Growth (update) Solid +4% All-in Sales Growth (update) In-line to +1% Increasing organic sales growth to a solid +4% for the fiscal year. Now expect all-in sales growth in the range of in-line to +1% versus last year.Includes a net headwind from foreign exchange of -3 to -4 poin
Slide 22: FY 2019 Guidance: Earnings Per Share
FY ‘19 Core EPS Growth +3% to +8% All-in EPS Growth +17% to +24% Maintaining Core EPS growth to +3% to +8% Core effective tax rate range of 17% to 18% (update)~1% reduction on average diluted shares outstanding (update) FY 2019 GuidanceEARNINGS PER SHARE
Slide 23: FY 2019 Guidance: Cash Generation and Usage
Increasing Adj. Free Cash Flow Productivity to at least 100%Capital Spending, % Sales 5% to 5.5%Dividends: Over $7BDirect Share Repurchase: Approximately $5B** Factors in cash used to complete the acquisition of Merck’s OTC business and cash spent on other deals. FY 2019 GuidanceCASH GENERATION AND
Slide 24: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessFurther commodity cost increasesFurther political and economic volatility FY 2019 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
Slide 25: 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,