Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 FY2018 Earnings Presentation
24 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 19, 2018
Slide 1: Earnings Release Q3 2018 Results
* Earnings ReleaseQ3 2018 ResultsApril 19, 2018
Slide 2: Business Results Q3 FY 2018
* * Business ResultsQ3 FY 2018
Slide 3: Third Quarter FY 2018 Results Summary
* Third Quarter FY 2018 Organic Sales Growth Organic Volume Growth Core EPS Growth Adj. Free Cash Flow Productivity Q3 FY ‘18 +1% +2% +4% 95%
Slide 4: Organic Sales Growth
* Jan – Mar 18 (Q3 FY 18) ResultsOrganic Sales Growth Organic sales growth was volume driven, with organic volume up +2%. Pricing rounded to a 2 point headwind and mix added a point to organic sales – mainly from growth of premium priced products.
Slide 5: Core EPS Growth
* Jan – Mar 18 (Q3 FY 18) ResultsCore EPS Growth Foreign exchange added about 3 points to EPS growth. Core gross margin declined 110 basis points driven by headwinds from higher commodity and transportation costs, mix, pricing and reinvestments. Core SG&A decreased 10 basis points with savings offse
Slide 6: Currency-Neutral Core EPS Growth
* Jan – Mar 18 (Q3 FY 18) ResultsCurrency-Neutral Core EPS Growth
Slide 7: Business Segment Results and Highlights Q3 FY 2018
* * Business Segment Results and HighlightsQ3 FY 2018
Slide 8: Beauty Segment Results
* -1% Pricing, +6% MixOrganic Sales: h Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share declined 0.3 point versus year agoNet Earnings: Productivity improvements, favorable product mix and currency help were partially offset by marketing investments
Slide 9: Beauty Highlights
* Hair Care organic sales were flat versus year ago. Developed markets were down low single digits related to competitive activity. Developing markets were up low single digits driven by premium innovation.Skin & Personal Care organic sales grew double digits versus year ago. Developing markets were
Slide 10: Grooming Segment Results
* -3% Pricing, -3% Mix Organic Sales: i Mid-single digits in Developed markets, h Low single digits in Developing marketsGlobal value share declined 0.3 points versus year ago (growing +0.3 past 1 month). Net Earnings: Productivity savings, volume and currency tailwinds were more than offset by the
Slide 11: Grooming Highlights
* * Grooming organic sales declined low single digits versus year ago due to softness in Shave Care. Developing markets increased low single digits led by growth in appliances. Developed markets decreased mid-single digits led by the pricing intervention in the U.S. Shave Care business. By Category
Slide 12: Health Care Segment Results
* * -2% Pricing, Flat MixOrganic Sales: Flat in Developed markets, h Mid-single digits in Developing marketsGlobal value share decreased 0.2 point versus year agoNet Earnings: Volume growth, currency tailwinds and productivity improvements were partially offset by pricing investments and unfavorable
Slide 13: Health Care Highlights
* * Oral Care organic sales declined low single digits versus year ago. Developed markets declined low single digits with growth in Power and Premium Paste Innovation offset by Paste value interventions and inventory adjustments in North America. Developing markets were flat with Premium Paste offse
Slide 14: Fabric & Home Care Segment Results
* * -1% 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, productivity improvements and currency tailwinds were more than offset by product and geograp
Slide 15: 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. Developing markets increased mid-single digits driven by innovation and pricing.Home Care organic sales grew
Slide 16: Baby, Feminine & Family Care Segment Results
* * -1% Pricing, Flat 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 and currency tailwinds were more than offset by commodity headwinds, value investments a
Slide 17: Baby, Feminine & Family Care Highlights
* * Baby Care organic sales declined mid-single digits versus year ago. Developed markets were down low single digits with value investments and competitive activity partially offset by strong Pants growth and innovation. Developing markets were down high single digits with strong growth on Pants of
Slide 18: FY 2018 Guidance
* * FY 2018 Guidance
Slide 19: FY 2018 Guidance: Sales
* FY ‘18 Organic Sales Growth +2% to +3% All-in Sales Growth About +3% Maintaining range of organic sales growth of 2% to 3%. We are at 1.4% fiscal year to date, leaving us at the low-end of this range – potentially rounding up to 2 percent for the full year. Expect all-in sales of about 3%. This in
Slide 20: FY 2018 Guidance: Core EPS
* FY ‘18 Core EPS Growth 6% to 8% All-in EPS Growth -31% to -33% Raising outlook of Core EPS growth range to 6% to 8%Now expect the core effective tax rate range of 22% to 22.5%~2% EPS benefit due to discrete share repurchases and carryover benefit from the beauty transaction share exchange FY 2018
Slide 21: FY 2018 Guidance: Cash Generation & Usage
* Increased toAdjusted Free Cash Flow Productivity: approximately 95%Capital Spending, % Sales: 5% to 5.5%Dividends: ~$7.5BDirect Share Repurchase: $6 to 8B FY 2018 GuidanceCash Generation & Usage
Slide 22: Potential Headwinds Not Included in Guidance
* Significant strengthening of the U.S. DollarFurther commodity cost increasesFurther political and economic volatilitySignificant deceleration of market growth rates FY 2018 GuidancePotential Headwinds Not Included in Guidance
Slide 23: P&G
P&G
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 base