Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 2024 Earnings Presentation
27 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 19, 2024
Slide 1: Earnings Release Q3 FY 2024 Results
Earnings Release Q3 FY 2024 Results April 19, 2024
Slide 2: Strategy & Focus Areas
STRATEGY & FOCUS AREAS INTEGRATED AREAS OF FOCUS GROWTH STRATEGY SUPPLY CHAIN PORTFOLIO PERFORMANCE DRIVES BRAND CHOICE ENVIRONMENTAL SUSTAINABILITY SUPERIORITY ORGANIZATION TO WIN WITH CONSUMERS EMPOWERED • AGILE ACCOUNTABLE DIGITAL ACUMEN CONSTRUCTIVE DISRUPTION PRODUCTIVITY EMPLOYEE TO FUEL INVES
Slide 3: Business Results
Business Results Q3 FY 2024 3
Slide 4: Q3 FY 2024 Highlights
Q3 FY 2024 HIGHLIGHTS Execution of our integrated strategy drove solid sales and market share results and another quarter of strong earnings and cash results. Organic sales grew 3%. Growth across categories continues to be broad based, with 8 of 10 product categories holding or growing organic sales
Slide 5: Q3 FY 2024 Results
Q3 FY 2024 RESULTS Q3 FY ‘24 Organic Sales Growth +3% Organic Volume Growth In-Line Core EPS Growth +11% Currency Neutral Core EPS Growth +18% Adjusted Free Cash Flow Productivity 87%
Slide 6: Organic Sales Growth
ORGANIC SALES GROWTH Q3 FY 2024 RESULTS • Pricing contributed 3 points to organic sales growth. • Mix was neutral. • Organic volume was in line with prior year. 8% 7% 7% 7% 5% 4% 3% Q1 FY '23 Q2 FY '23 Q3 FY '23 Q4 FY '23 Q1 FY '24 Q2 FY '24 Q3 FY '24
Slide 7: Core EPS Growth
CORE EPS GROWTH Q3 FY 2024 RESULTS • Core Gross margin +310 basis points • Core Operating margin +90 basis points • Total productivity savings +320 basis points 17% 16% 13% 11% -2% 3% -4% Q1 FY '23 Q2 FY '23 Q3 FY '23 Q4 FY '23 Q1 FY '24 Q2 FY '24 Q3 FY '24
Slide 8: Currency Neutral Core EPS Growth
CURRENCY NEUTRAL CORE EPS GROWTH Q3 FY 2024 RESULTS • Core Gross margin ex-FX +400 basis points • Core Operating margin ex-FX +220 basis points 22% 21% 18% 18% 13% 7% 5% Q1 FY '23 Q2 FY '23 Q3 FY '23 Q4 FY '23 Q1 FY '24 Q2 FY '24 Q3 FY '24
Slide 9: Global Market Shares
GLOBAL MARKET SHARES TOP 50 Category/ Country Combinations 38 33 30 32 31 28 26 23 17 # Grew/Held Value Share Share data through February 2024
Slide 10: Segment Results
Segment Results Q3 FY 2024 (rc
Slide 11: Beauty Segment
Q3 FY 2024 RESULTS BEAUTY SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 3% 4% 1% -3% • Topline: +4% Pricing, +1% Volume, -1% Mix • Share: Global Skin & Personal Care value share increased 0.1 points and Global Hair Care value share decreased 0.5 points versus year
Slide 12: Grooming Segment
Q3 FY 2024 RESULTS GROOMING SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 19% 10% 2% -2% • Topline: +10% Pricing, +2% Volume, -1% Mix • Share: Global Grooming value share increased 0.7 points versus year ago. • Net Earnings: Sales growth, pricing and productivity s
Slide 13: Health Care Segment
Q3 FY 2024 RESULTS HEALTH CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 6% 2% 0% -4% • Topline: +4% Pricing, +3% Mix, -4% Volume • Share: Global Oral Care value share increased 0.3 points and Global Personal Health Care value share increased 0.8 points versus
Slide 14: Fabric & Home Care Segment
Q3 FY 2024 RESULTS FABRIC & HOME CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 14% 11% 3% 1% • Topline: +2% Pricing, +1% Volume, flat mix • Share: Global Fabric Care value share decreased 0.5 points and Global Home Care value share increased 0.5 points versus
Slide 15: Baby, Feminine & Family Care Segment
Q3 FY 2024 RESULTS BABY, FEMININE & FAMILY CARE SEGMENT Constant Currency Organic Sales Organic Volume Net Earnings Net Earnings 13% 8% 0% -3% • Topline: +2% Pricing, +1% Mix, -3% Volume • Share: Global Baby Care value share decreased 0.2 points, Global Feminine Care share was in line with prior yea
Slide 16: FY 2024 Guidance
FY 2024 Guidance 16
Slide 17: FY 2024 Guidance: Sales
• Organic Sales Growth: +4% to +5% • Net Sales Growth: +2% to +4% • Includes a 1% to 2% negative impact from foreign exchange FY 2024 GUIDANCE SALES FY ‘24 Organic Sales Growth (Maintain) +4% to +5% Net Sales Growth (Maintain) +2% to +4%
Slide 18: FY 2024 Guidance: Earnings Per Share
• Core EPS Growth: +10% to +11% • Outlooking $0.9bn after-tax tailwind from commodities • Outlooking $0.6bn after-tax headwind from foreign exchange • Outlooking $0.1bn after-tax headwind from higher net interest expense • 4-point foreign exchange headwind results in currency neutral core EPS growth
Slide 19: FY 2024 Guidance: Cash Generation and Usage
Adjusted Free Cash Flow Productivity (Maintain) 90% FY 2024 ~4% GUIDANCE Capital Spending, % Sales (Maintain) CASH Dividends (Maintain) >$9bn GENERATION AND USAGE Direct Share Repurchase (Maintain) $5 to $6bn
Slide 20: FY 2024 Guidance Summary
METRIC FY 2024 GUIDANCE Organic Sales Growth +4% to +5% Net Sales Growth +2% to +4% Core EPS Growth +10% to +11% FY 2024 All-In EPS Growth +1% to +2% GUIDANCE +14% to +15% SUMMARY Currency Neutral Core EPS Growth Core Effective Tax Rate 20% to 21% Adjusted Free Cash Flow Productivity 90% Capital Spe
Slide 21: FY 2024 Guidance Potential Headwinds Not Included
• Significant deceleration of market growth rates • Significant, additional currency FY 2024 weakness GUIDANCE • Significant commodity cost increases POTENTIAL HEADWINDS • Major supply chain disruption or NOT INCLUDED IN GUIDANCE store closures • Additional geo-political disruptions and economic vol
Slide 22: ESG Resources
ESG RESOURCES ESG FOR INVESTORS WEBSITE – pginvestor.com/esg • Climate • Equality & Inclusion • Commitment to Governance • Waste • Advocating for Equality • Risk Oversight & Committee • Water • Policies & Practices Structure • Nature • Community Impact • Proxy Statement • TCFD • Employee Representat
Slide 23: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this 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, are “forwar
Slide 24: Regulation G Reconciliation of Non-GAAP Measures
The Procter & Gamble Company Regulation G Reconciliation of Non-GAAP Measures The following provides definitions of the non-GAAP measures used in Procter & Gamble's April 19th, 2024 earnings call, associated slides and other materials and the reconciliation to the most closely related GAAP measure.
Slide 25: Adjusted Free Cash Flow Definitions
Adjusted free cash flow: Adjusted free cash flow is defined as operating cash flow less capital spending. Adjusted free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion. Management views adjusted free cash flow as an
Slide 26: Core EPS and Currency-neutral Core EPS
2. Core EPS and Currency-neutral Core EPS: Three Months Ended March 31 2024 2023 Diluted EPS $1.52 $1.37 Incremental restructuring — — Intangible asset impairment — — Core EPS $1.52 $1.37 Percentage change vs. prior period Core EPS 11% Currency impact to earnings 0.09 Currency-Neutral Core EPS $1.61
Slide 27: Core Gross Margin and Core Operating Margin
3. Core gross margin and Currency-neutral Core gross margin: Three Months Ended March 31 2024 2023 Gross Margin 51.2% 48.2% Incremental restructuring 0.1% — Core Gross Margin 51.3% 48.2% Basis point change vs. prior year Core gross margin 310 Currency Impact to Margin 0.9% Currency-Neutral Core Gros
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