Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2019 Earnings Presentation
24 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 23, 2019
Slide 1: Earnings Release Q2 FY 2019 Results
Earnings ReleaseQ2 FY 2019 ResultsJanuary 23, 2019
Slide 2: Business Results Q2 Fiscal Year 2019
Business ResultsQ2 Fiscal Year 2019
Slide 3: Q2 Fiscal Year 2019 Highlights
Q2 Fiscal Year 2019 HIGHLIGHTS
Slide 4: Second Quarter FY 2019 Results Summary
Second Quarter FY 2019 Organic Sales Growth Organic Volume Growth Core EPS Growth Free Cash Flow Productivity Q2 FY ‘19 +4% +2% +5% 103% Currency Neutral Core EPS Growth +13%
Slide 5: Organic Sales Results
Oct – Dec 18 (Q2 FY 19) ResultsORGANIC SALES RESULTS Organic sales were driven by volume, pricing and mix. Organic volume up +2%, pricing +1% and mix +1%.
Slide 6: Core EPS Growth
Oct – Dec 18 (Q2 FY 19) ResultsCORE EPS GROWTH Core gross margin contracted 80 basis points, as 150 basis points (bps) of productivity improvements and 50 bps of pricing help were more than offset by 90 bps of commodity cost increases, 60 bps of foreign exchange headwinds, 30 bps of innovation reinv
Slide 7: Currency-Neutral Core EPS Growth
Oct – Dec 18 (Q2 FY 19) ResultsCURRENCY-NEUTRAL CORE EPS GROWTH Constant currency core operating margin increased 80 basis points. Excluding currency and commodities, core operating margin was up 170 points.
Slide 8: Business Segment Results and Highlights Q2 FY 2019
Business Segment Results and HighlightsQ2 FY 2019
Slide 9: Beauty Segment
+2% Pricing, +5% MixOrganic Sales: h Low single digits in Developed markets, h Double digits in Developing marketsGlobal value share increased 0.1 points versus year agoNet Earnings: Favorable product mix, pricing, cost of goods sold savings and tax help were partially offset by currency headwinds.
Slide 10: Beauty Highlights
Hair Care organic sales grew low single digits versus year ago. Developed markets were flat due to competitive activity. Developing markets were up low single digits driven by premium innovation, devaluation pricing and strong retail execution.Skin & Personal Care organic sales grew double digits ve
Slide 11: Grooming Segment
* +1% Pricing, Flat Mix Organic Sa % Pricing, Flat Mix Organic Sales: i Mid-single digits in Developed markets, h Low single in Developing marketsGlobal value share declined 0.5 points versus year ago. Sub-category mix reduced total grooming share. Global Shave share down 0.1 points versus year ago.
Slide 12: Grooming Highlights
Grooming organic sales declined low single digits versus year ago. Shave Care sales were down high single digits in Developed markets following strong merchandising support in the first quarter as well as heightened competitive activity. Developing market sales increased low single digits behind dev
Slide 13: Health Care Segment
* +1% Pricing, Flat MixOrganic Sales: h Mid-single digits in Developed markets, h Low single digits in Developing marketsGlobal value share increased 0.5 point versus year agoNet Earnings: Volume growth, productivity savings, pricing and tax help were partially offset by currency headwinds and lower
Slide 14: 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 in Europe. Developing markets grew mid-single digits due to devaluation pricing and strong results on Paste in LA
Slide 15: Fabric & Home Segment
* +1% Pricing, +1% MixOrganic Sales: h Mid-single digits in Developed markets, h Double digits in Developing marketsGlobal value share increased 0.6 points versus year agoNet Earnings: Innovation driven volume growth, pricing, productivity improvements and tax help were partially offset by more prof
Slide 16: Fabric & Home Highlights
Fabric Care organic sales grew high 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 double digits driven by premium innovation a
Slide 17: Baby, Feminine and Family Care Segment
* +1% Pricing, +1% MixOrganic Sales: h Low single digits in Developed markets, h High single digits in Developing marketsGlobal value share increased 0.3 points versus year agoNet Earnings: Volume growth, pricing, productivity savings and tax help were partially offset by commodity and currency head
Slide 18: 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 pricing. Developing markets grew mid-single digits driven by strong growth on pants form and premium taped diapers, devaluation pricing and st
Slide 19: FY 2019 Guidance
FY 2019 Guidance 19
Slide 20: FY 2019 Guidance: Sales
FY ‘19 Organic Sales Growth (update) +2% to +4% All-in Sales Growth (update) -1% to +1% Increasing the high-end of organic sales by a point to a new growth range of +2% to +4%. All-in sales in the range of -1% to +1% versus last year.Includes a net headwind from foreign exchange of -3 to -4 points.I
Slide 21: FY 2019 Guidance: Core EPS
FY ‘19 Core EPS Growth +3% to +8% All-in EPS Growth +17% to +24% Core EPS growth of +3% to +8% (no change vs. prior outlook)Expect net impact of interest expense, interest income and non-operating income to be a two point drag on EPS growthCore effective tax rate range of 19% to 20%~2% reduction on
Slide 22: FY 2019 Guidance: Cash Generation and Usage
Adjusted Free Cash Flow Productivity: > 90%Capital Spending, % Sales: 5% to 5.5%Dividends: Over $7BDirect Share Repurchase: Up to $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 USAGE
Slide 23: 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 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,