Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2021 Earnings Presentation
26 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 20, 2021
Slide 1: Earnings Release Q2 FY 2021 Results
Earnings Release Q2 FY 2021 ResultsJanuary 20, 2021
Slide 2: Business Results Q2 FY 2021
Business ResultsQ2 FY 2021
Slide 3: Immediate Priorities
IMMEDIATE PRIORITIES Ensuring the health and safety of P&G colleagues around the world.Maximizing the availability of products we produce to help people and their families with their cleaning, health and hygiene needs.Supporting communities, relief agencies and people who are on the front lines of t
Slide 4: Strategic Focus Areas
SUPERIORITYTO WIN WITH CONSUMERS LEADING CONSTRUCTIVE DISRUPTION FOCUSED & AGILE ORGANIZATION STRATEGIC FOCUS AREAS PORTFOLIO: DAILY USE, PERFORMANCE DRIVES BRAND CHOICE PRODUCTIVITY TO FUEL INVESTMENTS Products Packaging Value New StandardOf Excellence Communication Retail Execution
Slide 5: Highlights
Q2 FY 2021 HIGHLIGHTS Strong momentum created over the past two years Pa ftatalt enabling a ‘ further guidance increase for organic sales growth, core EPS growth and « commitment for cash productivity and cash return. to. shareowners : Organic sales grew +8% driven by volume, pricing and mix. All 10
Slide 6: Results: Q2 FY21 Key Metrics
Organic Sales Growth Organic Volume Growth Core EPS Growth Adjusted Free Cash Flow Productivity Q2 FY ‘21 +8% +5% +15% 113% Currency Neutral Core EPS Growth +18% Q2 FY 2021 RESULTS
Slide 7: Results: Organic Sales Growth
Q2 FY 2021 RESULTSORGANIC SALES GROWTH Q2 Organic sales were driven by volume, pricing and mix. Organic volume up +5%, pricing +1% and mix +2%.
Slide 8: Results: Core EPS Growth
Core gross margin +150 basis pointsCore operating margin +250 basis pointsTotal productivity savings +280 basis points Q2 FY 2021 RESULTSCORE EPS GROWTH
Slide 9: Results: Currency-Neutral Core EPS Growth
Q2 FY 2021 RESULTSCURRENCY-NEUTRAL CORE EPS GROWTH Core gross margin ex-FX +200 basis pointsCore operating margin ex-FX +310 basis points
Slide 10: Business Segment Results and Highlights
Business Segment Results and HighlightsQ2 FY 2021
Slide 11: Results: Beauty Segment
+2% Pricing, +1% MixGlobal value share decreased 0.6 points versus year ago. Hair Care share is flat and Skin & Personal Care share is down versus year ago.Net Earnings: Volume growth, pricing help, and productivity savings were partially offset by marketing investments behind North America and Chin
Slide 12: Results: Beauty Highlights
Beauty Segment has delivered 21 consecutive quarters of organic sales growth through Q2.Hair Care organic sales increased mid-single digits versus year ago. Greater China grew double digits driven by premium product innovation and strong retail execution. Latin America grew double digits led by inno
Slide 13: Results: Grooming Segment
+1% Pricing, +1% Mix Global value share decreased 0.9 points versus year ago. Sub-category mix reduced total Grooming share. Global Shave share decreased 0.2 points versus year ago. Global Appliances share increased 2.6 points versus year ago.Net Earnings: Volume and productivity savings were partia
Slide 14: Results: Grooming Highlights
Shave Care organic sales increased low single digits versus year ago. High single digit growth in female blades & razors was partially offset by market softness in male blades & razors due to pandemic-related consumption decline. North America Shave Care sales were unchanged versus year ago, with co
Slide 15: Results: Health Care Segment
+1% Pricing, +4% MixGlobal value share increased 1.5 points versus year ago, with share growth in both Oral Care and Personal Health Care.Net Earnings: Volume growth, productivity savings and pricing help were partially offset by investments in brand communication and negative mix. Q2 FY 2021 RESULT
Slide 16: Results: Health Care Highlights
Oral Care organic sales increased double digit versus year ago. North America sales increased high single digits behind premium paste and power toothbrush innovation. Europe organic sales grew double digits led by strong premium innovation on power toothbrush. Greater China grew organic sales mid-te
Slide 17: Results: Fabric & Home Segment
+1% Pricing, +4% MixGlobal value share increased 0.9 points versus year ago, with share growth in both Fabric Care and Home Care.Net Earnings: Strong premium innovation-driven volume growth and pricing help were partially offset by investments in brand communication and currency headwinds. Q2 FY 202
Slide 18: Results: Fabric & Home Highlights
Fabric Care organic sales grew high single digits versus year ago. North America delivered mid-teens organic sales growth led by premium innovation-driven volume growth across Laundry and Fabric Enhancers, investments in brand communication, strong retail execution and market growth. Greater China F
Slide 19: Results: Baby, Feminine, and Family Care Segment
+2% Pricing, flat MixGlobal value share decreased 0.2 points versus year ago. FemCare is growing share versus year ago, offset by share decline in Baby Care and Family Care.Net Earnings: Volume growth, productivity savings, commodity tailwinds and pricing were partially offset by currency headwinds.
Slide 20: Results: Baby, Feminine, and Family Care Highlights
Baby Care organic sales increased low single digits. North America grew mid-single digits driven by retailer inventory re-stocking and consumption growth across premium products, pants and wipes. Europe organic sales grew mid-single digits driven by wipes consumption and pricing. Latin America decli
Slide 21: FY 2021 Guidance
FY 2021 Guidance
Slide 22: FY 2021 Guidance: Sales
FY ‘21 Organic Sales Growth (increased) +5% to +6% All-in Sales Growth (increased) +5% to +6% Increased organic sales growth guidance to +5% to +6%Increased all-in sales growth to +5% to +6%Foreign exchange is expected to be neutral for the year FY 2021 GuidanceSALES
Slide 23: FY 2021 Guidance: Earnings Per Share
FY ‘21 FY ’20 BasePeriod EPS Core EPS Growth (increased) +8% to +10% $5.12 All-in EPS Growth (increased) +8% to +10% $4.96 Increased Core EPS growth to +8% to +10% Increased All-in EPS to +8% to +10%Includes non-core charges of $0.16 per share from early debt retirementCore Effective Tax Rate range
Slide 24: FY 2021 Guidance: Cash Generation and Usage
Increased Free Cash Flow Productivity: 95% to 100%Capital Spending % Sales: 4% to 5%Dividends: ~$8BIncreased Share Repurchase: Up to $10B FY 2021 GuidanceCASH GENERATION AND USAGE
Slide 25: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant commodity cost increasesAdditional geo-political disruptions and economic volatility FY 2021 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
Slide 26: 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,