Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q4 2018 Earnings Presentation
30 slides from Procter & Gamble Company (the)'s earnings presentation, Jul 31, 2018
Slide 1: Earnings Release FY 2018 and Q4 2018 Results
* Earnings ReleaseFY 2018 and Q4 2018 ResultsJuly 31, 2018
Slide 2: Business Results Fiscal Year 2018
* * Business ResultsFiscal Year 2018
Slide 3: Fiscal Year 2018 Highlights
* Fiscal Year 2018 Highlights
Slide 4: Category and Market Highlights
* Category and Market Highlights
Slide 5: Fiscal Year 2018 Results: Organic Sales Growth
* Fiscal Year 2018 ResultsOrganic Sales Growth FY 2018 sales growth was volume driven, with organic volume growing +2%.
Slide 6: Fiscal Year 2018 Results: Core EPS Growth
* Fiscal Year 2018 ResultsCore EPS Growth Delivered 8% Core EPS – above the high-end of the going-in guidance range. Productivity cost savings contributed 260 basis points of margin benefit.
Slide 7: Fiscal Year 2018 Results: Currency-Neutral Core EPS Growth
* Fiscal Year 2018 ResultsCurrency-Neutral Core EPS Growth
Slide 8: Business Results Q4 FY 2018
* * Business ResultsQ4 FY 2018
Slide 9: Fourth Quarter FY 2018 Results Summary
* Fourth Quarter FY 2018 Organic Sales Growth Organic Volume Growth Core EPS Growth Adj. Free Cash Flow Productivity Q4 FY ‘18 +1% +3% +11% 158%
Slide 10: Results: Organic Sales Growth
* Apr – Jun 18 (Q4 FY 18) ResultsOrganic Sales Growth Organic sales growth was volume driven, with organic volume up +3%. Pricing was a 2 point headwind to organic sales.
Slide 11: Results: Core EPS Growth
* Apr – Jun 18 (Q4 FY 18) ResultsCore EPS Growth Core gross margin declined 140 basis points with 270 basis points of manufacturing cost savings more than offset by commodity and shipping cost increases, unfavorable pricing impacts, product and packaging investments and unfavorable mix. Expect margi
Slide 12: Results: Currency-Neutral Core EPS Growth
* Apr – Jun 18 (Q4 FY 18) ResultsCurrency-Neutral Core EPS Growth
Slide 13: Business Segment Results and Highlights Q4 FY 2018
* * Business Segment Results and HighlightsQ4 FY 2018
Slide 14: Results: Beauty Segment
* Flat Pricing, +3% MixOrganic Sales: h Low single digits in Developed markets, h Double digits in Developing marketsGlobal value share declined 0.1 point versus year agoNet Earnings: Productivity improvements, volume and favorable product mix were partially offset by investments to strengthen brand
Slide 15: Results: Beauty Highlights
* Hair Care organic sales grew mid-single-digits versus year ago. Developed markets were up low single digits behind premium innovation and strong retail execution. Developing markets were up mid-single digits driven by premium innovation and strong retail execution.Skin & Personal Care organic sale
Slide 16: Results: Grooming Segment
* Apr – Jun 18 (Q4 FY 18) ResultsGrooming Segment *
Slide 17: Results: Grooming Highlights
* * By Category Organic Sales Growth IYA Organic Sales Growth IYA Organic Sales Growth IYA By Category Global Developed Developing Grooming - - ~= Apr – Jun 18 (Q4 FY 18) ResultsGrooming Highlights + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greate
Slide 18: Results: Health Care Segment
* * -2% Pricing, -1% MixOrganic Sales: h Low single digits in Developed markets, h Low single digits in Developing marketsGlobal value share increased 0.1 point versus year agoNet Earnings: Volume growth and productivity savings were more than offset by investments in consumer and customer value and
Slide 19: Results: Health Care Highlights
* * Oral Care organic sales increased low single digits versus year ago. Developed markets grew low single digits with growth in Power and Premium Paste Innovation partially offset by the reversal of a U.S. Paste list price increase in the base year. Developing markets declined low single digits wit
Slide 20: Results: Fabric & Home Care Segment
* * -3% Pricing, Flat MixOrganic Sales: h Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share increased 0.2 points versus year agoNet Earnings: Volume growth and productivity improvements were more than offset by geographic and more profitable, but low
Slide 21: Results: Fabric & Home Care Highlights
* * Fabric Care organic sales grew low single digits versus year ago. Developed markets increased low single digits behind innovation driven volume growth across Laundry and Fabric Enhancers offset partially by investments into consumer and customer value. Developing markets increased mid-single dig
Slide 22: Results: Baby, Feminine & Family Care Segment
* * -1% Pricing, -1% MixOrganic Sales: i Low single digits in Developed markets, i Mid-single digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Productivity savings were more than offset by commodity and currency headwinds, consumer and customer value in
Slide 23: Results: Baby, Feminine & Family Care Highlights
* * Baby Care organic sales declined high single digits versus year ago. Developed markets were down high single digits due to continued consumer value investments to restore competitiveness, especially on Luvs, and competitive activity partially offset by premium innovation. Developing markets were
Slide 24: FY 2019 Guidance
* * FY 2019 Guidance
Slide 25: FY 2019 Guidance: Sales
* FY ‘19 Organic Sales Growth +2% to +3% All-in Sales Growth 0% to +1% Organic sales growth in range of 2% to 3%Expect all-in sales in range of in-line to up 1% versus last yearIncludes a net headwind from foreign exchange and A&D of ~2 pointsIncludes impact of lost sales from the dissolution of the
Slide 26: FY 2019 Guidance: Core EPS
* FY ‘19 Core EPS Growth +3% to +8% All-in EPS Growth +16% to +23% Core EPS growth of 3% to 8%Expect net impact of interest expense, interest income and non-operating income to be a net drag of ~2.5 points on EPS growthCore effective tax rate range of 19% to 20%~2% reduction on average diluted share
Slide 27: FY 2019 Guidance: Cash Generation & 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 required to complete the acquisition of Merck’s OTC business during the year and cash spent on other deals. FY 2019 GuidanceCash Generation & Usage
Slide 28: FY 2019 Guidance: 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 29: P&G
P&G
Slide 30: 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 base