Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q1 FY2016 Earnings Presentation
26 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 23, 2015
Slide 1: Earnings Release: Q1 FY 2016 Results
Procter & GambleEarnings Release:Q1 FY 2016 Results October 23, 2015
Slide 2: Business Results Q1 FY 2016
Business ResultsQ1 FY 2016
Slide 3: Organic Sales Growth
Jul – Sept 15 (Q1 FY 16) ResultsOrganic Sales Growth* * Restated for Batteries, Beauty category exits & Venezuela deconsolidation JAS 15
Slide 4: Market Share
Jul – Sept 15 (Q1 FY 16) ResultsMarket Share Global value share ~22% % of Sales Holding/Growing Share ~35%
Slide 5: Core EPS Growth
Jul – Sept 15 (Q1 FY 16) ResultsCore EPS Growth* * Restated for Batteries & Beauty category exits Core EPS includes 270 basis points of operating margin improvement, including 260 basis points of productivity savings.
Slide 6: Currency Neutral Core EPS Growth
Jul – Sept 15 (Q1 FY 16) ResultsCurrency Neutral Core EPS Growth* * Restated for Batteries & Beauty category exits
Slide 7: Non-Core Restructuring Spending
Results To-DateNon-Core Restructuring Spending* FY 16 ($MM Before Tax) JAS Cost of Goods Sold 72 SG&A 0 Total Non-Core Restructuring 72 * Exclude Batteries, Beauty category exits & Venezuela
Slide 8: Business Segments Q1 FY 2016
Business Segments Q1 FY 2016
Slide 9: Beauty Segment
Jul – Sept 15 (Q1 FY 16) ResultsBeauty Segment -2% -4% -2% +1% Pricing, +1% MixOrganic Sales: i Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share* declined 1.0 points versus year agoNet Earnings: Productivity improvements, pricing helps and positive
Slide 10: Grooming Segment
Jul – Sept 15 (Q1 FY 16) ResultsGrooming Segment Flat -3% -16% +5% Pricing, -2% MixOrganic Sales: i Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share declined 1.3 points versus year agoNet Earnings: Productivity improvements and pricing were more tha
Slide 11: Health Care Segment
Jul – Sept 15 (Q1 FY 16) ResultsHealth Care Segment -1% -6% -1% +2% Pricing, +3% MixOrganic Sales: i Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share declined 0.5 points versus year agoNet Earnings: Productivity improvements, pricing and positive mi
Slide 12: Fabric & Home Care Segment
Jul – Sept 15 (Q1 FY 16) ResultsFabric & Home Care Segment Flat -2% 4% +1% Pricing, +1% MixOrganic Sales: h Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share declined 0.4 points versus year agoNet Earnings: Productivity improvements and pricing were
Slide 13: Baby, Feminine & Family Care Segment
Jul – Sept 15 (Q1 FY 16) ResultsBaby, Feminine & Family Care Segment -3% -6% -9% +2% Pricing, +1% MixOrganic Sales: i Low single digits in Developed markets, i Mid-single digits in Developing marketsGlobal value share declined 1.4 points versus year agoNet Earnings: Productivity improvements and pri
Slide 14: Category Highlights Q1 FY 2016
Category HighlightsQ1 FY 2016
Slide 15: Beauty Highlights
Jul – Sept 15 (Q1 FY 16) ResultsBeauty Highlights Hair Care organic sales were down versus year ago. Developed market sales declined as growth in Head & Shoulders was more than off-set by challenges on Herbal Essences. Developing market sales were about flat as solid sales in Latin America were offs
Slide 16: Grooming Highlights
Jul – Sept 15 (Q1 FY 16) ResultsGrooming Highlights Shave Care organic sales were in-line with year ago. Developing market sales were up mid-single digits behind the Fusion FlexBall expansion and price increases and were offset by Developed market declines from increased competitive activity, catego
Slide 17: Health Care Highlights
Jul – Sept 15 (Q1 FY 16) ResultsHealth Care Highlights Oral Care organic sales were in-line with year ago. Strong growth globally on power toothbrushes and across the portfolio in Western Europe was largely offset by customer inventory adjustments in China and increased pricing in Brazil.Personal He
Slide 18: Fabric & Home Care Highlights
Jul – Sept 15 (Q1 FY 16) ResultsFabric & Home Care Highlights Fabric Care organic sales were about flat as solid growth in the U.S. behind innovation and pricing in developing markets was offset by declines due to de-prioritizing less profitable brands and products and increased competitive activity
Slide 19: Baby, Feminine & Family Care Highlights
Jul – Sept 15 (Q1 FY 16) ResultsBaby, Feminine & Family Care Highlights Baby Care organic sales were in-line with year ago as solid growth in the U.S was partially offset by customer inventory adjustments following pricing for currency devaluation and trade term changes in developing markets. In the
Slide 20: FY 2016 Guidance
FY 2016 Guidance
Slide 21: FY 2016 Guidance: Organic Sales & EPS Growth
FY 2016 Guidance*Organic Sales & EPS Growth FY’16 Organic Sales Growth In-line to Up Low Single Digits Currency -5% to -6% Venezuela & Minor brand divestitures -2% to -3% All-in Sales Growth Down High Single Digits Core Operating Profit Up Mid to High Single Digits Core Earnings Per Share Growth Dow
Slide 22: FY 2016 Guidance: Cash Generation & Usage
FY 2016 GuidanceCash Generation & Usage Adjusted Free Cash Flow Productivity: 90-100%Capital Spending, % Sales: 5% to 6%Dividends: $7B+Share Retirement/Repurchases*: $8B to $9B * Includes shares retired at the close of the Duracell transaction.
Slide 23: Potential Headwinds Not Included in Guidance
FY 2016 GuidancePotential Headwinds Not Included in Guidance Further foreign currency weaknessChange in market growth rates Unrest in the Middle East, Russia & the UkraineMarkets like Argentina and Brazil – with softened market conditions
Slide 24: Potential Tailwinds Not Included in Guidance
FY 2016 GuidancePotential Tailwinds Not Included in Guidance Strengthening of foreign currencies Expansion of marketsU.S. economic growth accelerates
Slide 25: Slide 25
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,