Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2022 Earnings Presentation
28 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 19, 2022
Slide 1: Earnings Release Q2 FY 2022 Results
Earnings Release Q2 FY 2022ResultsJanuary 19, 2022
Slide 2: Strategic Priorities
StrategicPriorities
Slide 3: Immediate Priorities
IMMEDIATE PRIORITIES Ensuring the health and safety of our 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
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: Business Results
Business ResultsQ2 FY 2022
Slide 6: Highlights
Q2 FY 2022 HIGHLIGHTS Organic sales grew more than 6% driven by volume. and pricing. ‘ Each of the 10 product categories grew or held orgat ic sales this quart Nl ys Aggregate market share growth of 60 basis points. .@ Our progress enables us to maintain fiscal year EPS guidance while i cre sing est
Slide 7: Q2 FY22 Results
Organic Sales Growth Organic Volume Growth Core EPS Growth Free CashFlow Productivity Q2 FY ‘22 +6% +3% +1% 106% Currency Neutral Core EPS Growth +2% Q2 FY 2022 RESULTS
Slide 8: Organic Sales Growth Results
Volume and pricing each contributed3 points of organic sales growth. ORGANIC SALES GROWTHQ2 FY 2022 RESULTS
Slide 9: Core EPS Growth Results
Core gross margin -400 basis pointsCore operating margin -250 basis pointsTotal productivity savings +150 basis points CORE EPS GROWTHQ2 FY 2022 RESULTS
Slide 10: Currency Neutral Core EPS Growth Results
Core gross margin ex-FX -410 basis pointsCore operating margin ex-FX -240 basis points CURRENCY NEUTRAL CORE EPS GROWTHQ2 FY 2022 RESULTS
Slide 11: Global Market Shares
GLOBAL MARKET SHARES Top 50 Category/Country Combinations # Grew/Held Value Share
Slide 12: Business Segment Results and Highlights
Business Segment Results and HighlightsQ2 FY 2022
Slide 13: Beauty Segment Results
Topline: +2% Pricing, +1% Volume, -1% MixGlobal value share was flat versus year ago. Skin & Personal Care share increased 0.2 points and Hair Care share decreased 0.8 points versus year ago.Net Earnings: Driven by pricing and modest volume, offset by product mix and commodities. Q2 FY 2022 RESULTSB
Slide 14: Beauty Highlights
Beauty Segment has delivered 25 consecutive quarters of organic sales growth through Q2.Hair Care organic sales increased low single digits versus year ago. North America grew mid-single digits driven by strong consumption on Shampoo and Conditioner. Europe grew mid-single digits behind overall mark
Slide 15: Grooming Segment Results
Q2 FY 2022 RESULTSGROOMING SEGMENT Topline: +4% Pricing, +1% Volume, flat MixGlobal value share increased 1 point versus year ago. Both Global Shave share and Global Appliances share increased versus year ago.Net Earnings: Pricing and volume were partially offset by negative mix.
Slide 16: Grooming Highlights
Shave Care organic sales grew mid-single digits, with growth across all sub-segments: Male, Female and Pre/Post Shave. Female Blades & Razors grew mid-teens behind premium innovation.Appliances organic sales grew mid-single digits. Europe and North America growth was driven by pricing and premium in
Slide 17: Health Care Segment Results
Topline: +4% Volume, +3% Mix, +1% PricingGlobal share increased 0.5 points versus year ago in both Oral Care and Personal Health Care.Net Earnings: Volume and pricing were partially offset by commodity costs, higher freight costs and investments in brand communication. Q2 FY 2022 RESULTSHEALTH CARE
Slide 18: Health Care Highlights
Oral Care organic sales increased low single digits versus year ago behind premium innovation. North America grew mid-single digits, with growth in all forms (toothbrush, paste, denture, rinse, floss and whitening). Europe declined low single digits due to supply constraints impacting power brushes.
Slide 19: Fabric & Home Segment Results
Topline: +7% Volume, +2% Pricing, -1% MixGlobal value share increased 1.9 points versus year ago, with over a point of share growth in both Fabric Care and Home Care.Net Earnings: Volume and pricing help were more than offset by significant commodity and freight costs. Q2 FY 2022 RESULTSFABRIC & HOM
Slide 20: Fabric & Home Highlights
Fabric Care organic sales grew double digits versus year ago. Growth is broad based across regions, as well as Laundry and Fabric Enhancers. Growth continues to be driven by premium innovation, with global Laundry Unit-Dose and Fabric Enhancer Beads growing double digits.Home Care organic sales incr
Slide 21: Baby, Feminine and Family Care Segment Results
Topline: +3% Pricing, +1% Volume, +1% MixGlobal value share for the Baby, Feminine and Family Care segment increased 1 point versus year ago, with share growth in all 3 categories.Net Earnings: Pricing and volume were more than offset by significant commodity and freight costs. Q2 FY 2022 RESULTSBAB
Slide 22: Baby, Feminine and Family Care Highlights
Baby Care organic sales increased high single digits. North America grew mid-teens and Europe grew mid-single digits behind pricing and premium innovation. This was partially offset by a decline in Greater China, driven by strong competitive activity.Feminine Care organic sales grew double digits. P
Slide 23: FY 2022 Guidance
FY 2022 Guidance
Slide 24: FY 2022 Guidance: Sales
FY ‘22 Organic Sales Growth +4% to +5% All-in Sales Growth +3% to +4% FY 2022 GuidanceSALES Increased organic sales growth +4% to +5%Increased all-in sales growth +3% to +4%Includes a one percent negative impact from foreign exchange
Slide 25: FY 2022 Guidance: Earnings Per Share
FY ‘22 FY ’21 BasePeriod EPS Core EPS Growth +3% to +6% $5.66 All-in EPS Growth +6% to +9% $5.50 FY 2022 GuidanceEARNINGS PER SHARE Maintained Core EPS growth +3% to +6%$2.8bn after tax commodity, freight & foreign exchange headwinds represent a $1.10 per share impact to FY ’22 Core EPS (20% headwin
Slide 26: FY 2022 Guidance: Cash Generation and Usage
FY 2022 GuidanceCASH GENERATION AND USAGE Increased Free Cash Flow Productivity: 95% Capital Spending, % Sales: 4% to 5%Dividends: >$8BIncreased Direct Share Repurchase: $9 to $10B
Slide 27: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant further commodity and freight cost increasesMajor supply chain disruption or store closuresAdditional geo-political disruptions and economic volatility FY 2022 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
Slide 28: 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,