Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q1 FY2020 Earnings Presentation
24 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 22, 2019
Slide 1: Earnings Release Q1 FY 2020
Earnings Release Q1 FY 2020October 22, 2019
Slide 2: Business Results Q1 FY 2020
Business ResultsQ1 FY 2020
Slide 3: Q1 FY 2020 Highlights
Q1 FY 2020 ecere ee? HIGHLIGHTS oneetatat Increasing the outlook for the fiscal year across' cash after a strong first quarter. Organic sales grew +7% driven by volume, pricil 10 of 10 global categories grew organic sales. All channel consumption remained ahead of unde ( aggregate market share growt
Slide 4: Q1 Fiscal Year 2020 Results Summary
Q1 Fiscal Year 2020 Organic Sales Growth Organic Volume Growth Core EPS Growth Adjusted Free Cash Flow Productivity Q1 FY ‘20 +7% +4% +22% 91% Currency Neutral Core EPS Growth +24%
Slide 5: Results: Organic Sales Growth
Q1 FY 2020 RESULTSORGANIC SALES GROWTH Organic sales were driven by volume, pricing and mix. Organic volume up +4%, pricing +1% and mix +2%.
Slide 6: Results: Core EPS Growth
Q1 FY 2020 RESULTSCORE EPS GROWTH Core gross margin +190 basis pointsCore operating margin +260 basis pointsTotal productivity savings +160 basis points
Slide 7: Results: Currency-Neutral Core EPS Growth
Q1 FY 2020 RESULTSCURRENCY-NEUTRAL CORE EPS GROWTH Core gross margin ex-FX +200 basis pointsCore operating margin ex-FX +260 basis points
Slide 8: Business Segment Results and Highlights
Business Segment Results and HighlightsQ1 FY 2020
Slide 9: Results: Beauty Segment
+3% Pricing, +4% MixGlobal value share grew +0.3 versus year agoNet Earnings: Volume growth, positive mix and pricing were partially offset by brand communication investments, production line start-up costs and currency headwinds. Q1 FY 2020 RESULTSBEAUTY SEGMENT
Slide 10: Results: Beauty Highlights
Hair Care organic sales grew mid-single digits versus year ago. North America and Europe regions both grew organic sales mid-single digits behind innovation led volume growth and strong retail execution. Greater China Hair Care organic sales were flat with positive mix from innovation offset by chan
Slide 11: Results: Grooming Segment
+1% Pricing, flat Mix Global value share declined 0.4 points versus year ago. Net Earnings: Positive legal settlement and productivity savings were offset by currency headwinds, volume decline and lower margin product mix hurt. Q1 FY 2020 RESULTSGROOMING SEGMENT
Slide 12: Results: Grooming Highlights
Grooming organic sales increased low single digits versus year ago. Shave Care organic sales were flat. Europe Shave Care grew organic sales low single digits behind premium innovation. Greater China Shave Care grew organic sales high single digits driven by innovation and favorable product mix. Lat
Slide 13: Results: Health Care Segment
+1% Pricing, +2% MixGlobal value share increased 0.3 points versus year agoNet Earnings: Volume growth, pricing, and positive mix were partially offset by higher overhead costs related to Merck. Q1 FY 2020 RESULTSHEALTH CARE SEGMENT
Slide 14: Results: Health Care Highlights
Oral Care organic sales increased high single digits versus year ago. North America and Greater China grew high single digits driven by Power toothbrushes, premium toothpaste innovation and pricing. Personal Health Care organic sales increased double digits versus year ago due to innovation-driven v
Slide 15: Results: Fabric & Home Segment
Flat Pricing, +1% MixGlobal value share increased 0.7 points versus year agoNet Earnings: Innovation-driven volume growth, commodity tailwinds and productivity improvements were partially offset by more profitable, but lower margin product mix hurt and brand communication investments. Q1 FY 2020 RES
Slide 16: Results: Fabric & Home Highlights
Fabric Care organic sales grew high single digits versus year ago. Broad based growth led by premium innovation-driven volume growth across laundry and fabric enhancers. Greater China and Asia Pacific delivered double digit organic sales growth, North America delivered high single digit organic sale
Slide 17: Results: Baby, Feminine and Family Care Segment
+2% Pricing, +1% MixGlobal value share declined 0.5 points versus year agoNet Earnings: Volume, pricing, productivity savings and commodity tailwinds were partially offset by brand communication investments and currency headwinds. Q1 FY 2020 RESULTSBABY, FEMININE and FAMILY CARE SEGMENT
Slide 18: Results: Baby, Feminine and Family Care Highlights
Baby Care organic sales increased low single digits driven by strength of premium tier offerings and pricing partially offset by continued softness on mid-tier and value tier diapers due to competitive activity. Continued strong growth on Pant forms across markets. Feminine Care organic sales increa
Slide 19: FY 2020 Guidance
FY 2020 Guidance
Slide 20: FY 2020 Guidance: Sales
FY ‘20 Organic Sales Growth (increased) +3% to +5% All-in Sales Growth (increased) +3% to +5% Increased organic sales growth guidance to +3% to +5%Increased all-in sales growth to +3% 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) +5% to +10% All-in EPS Growth (increased) +225% to +243% Increased Core EPS growth to +5% to +10% Core effective tax rate range of 17% to 18% Increased all-in EPS of +225% to +243% with the Gillette Shave Care carrying value adjustment in the base period (Q4). Impa
Slide 22: FY 2020 Guidance: Cash Generation and Usage
Increased Free Cash Flow Productivity: 95% Capital Spending, % Sales: 4.5% to 5.0%Dividends: Over $7.5BDirect Share Repurchase: $6 to $8B FY 2020 GuidanceCASH GENERATION AND USAGE
Slide 23: FY 2020 Guidance: Potential Headwinds Not Included
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,