Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2025 Earnings Presentation
24 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 22, 2025
Slide 1: Earnings Release Q2 FY 2025 Results
EARNINGSRELEASE Q2 FY 2025 RESULTS January 22, 2025
Slide 2: Strategy & Focus Areas
STRATEGY & FOCUS AREAS INTEGRATED GROWTH STRATEGY AREAS OF FOCUS ENVIRONMENTAL SUSTAINABILITY DIGITAL ACUMEN EMPLOYEE VALUE EQUATION SUPPLY CHAIN SUPERIORITY TO WIN WITH CONSUMERS PRODUCTIVITY TO FUEL INVESTMENTS ORGANIZATION EMPOWERED • AGILE ACCOUNTABLE PORTFOLIO PERFORMANCE DRIVES BRAND CHOICE CO
Slide 3: Business Results Q2 FY 2025
BUSINESS RESULTS Q2 FY 2025
Slide 4: Highlights
Q2 FY 2025 HIGHLIGHTS Second quarter results enable us to maintain our guidance ranges for Fiscal 2025. Organic sales grew 3%, driven by volume and mix. 9 of 10 product categories grew organic sales for the quarter. Global aggregate value share was flat, with 28 of our top 50 category/country combin
Slide 5: Results Q2 FY '25
Q2 FY 2025 RESULTS Q2 FY ’25 Organic Sales Growth +3% Organic Volume Growth +2% Core EPS Growth +2% Currency Neutral Core EPS Growth +3% Adjusted Free Cash Flow Productivity 84%
Slide 6: Organic Sales Growth Results
ORGANIC SALES GROWTHQ2 FY 2025 RESULTS Organic volume grew 2 points Mix contributed 1 point to organic sales growth Pricing was neutral
Slide 7: Core EPS Growth Results
CORE EPS GROWTHQ2 FY 2025 RESULTS Core gross margin Core operating margin Total productivity savings -30 basis points -80 basis points +260 basis points
Slide 8: Currency Neutral Core EPS Growth Results
CURRENCY NEUTRAL CORE EPS GROWTHQ2 FY 2025 RESULTS Core Gross margin ex-FX Core Operating margin ex-FX -20 basis points -50 basis points
Slide 9: Global Market Shares
GLOBAL MARKET SHARES Top 50 Category/ Country Combinations # Grew/Held Value Share Share data through November 2024
Slide 10: Segment Results
SEGMENT RESULTS Q2 FY 2025
Slide 11: Beauty Segment Results
Q2 FY 2025 RESULTSBEAUTY SEGMENT Topline: +2% pricing, flat volume and mix Share: Global Skin Care value share decreased 0.7 points, Global Personal Care value share increased 0.8 points and Global Hair Care value share decreased 0.7 points versus year ago. Net Earnings: Sales growth and productivit
Slide 12: Grooming Segment Results
Q2 FY 2025 RESULTSGROOMING SEGMENT Topline: +2% volume, +1% pricing, -1% mix Share: Global Grooming value share increased 0.3 points versus year ago. Net Earnings: Volume growth and productivity savings partially offset by negative mix.
Slide 13: Health Care Segment Results
Q2 FY 2025 RESULTSHEALTH CARE SEGMENT Topline: +2% mix, +1% pricing, flat volume Share: Global Oral Care value share increased 0.1 points and Global Personal Health Care value share decreased 0.1 points versus year ago. Net Earnings: Sales growth and productivity savings partially offset by wage inf
Slide 14: Fabric & Home Care Segment Results
Q2 FY 2025 RESULTSFABRIC & HOME CARE SEGMENT Topline: +2% volume, +1% mix, pricing flat Share: Global Fabric Care value share increased 0.1 points and Global Home Care value share increased 0.3 points versus year ago. Net Earnings: Sales growth and productivity savings more than offset by product mi
Slide 15: Baby, Feminine & Family Care Segment Results
Q2 FY 2025 RESULTSBABY, FEMININE & FAMILY CARE SEGMENT Topline: volume +4%, -1% pricing, flat mix Share: Global Baby Care value share was in line with prior year, Global Feminine Care value share decreased 0.4 points and Global Family Care share increased 0.3 points Net Earnings: Increased volume an
Slide 16: FY 2025 Guidance
FY 2025 GUIDANCE
Slide 17: FY 2025 Guidance: Sales
FY 2025 GUIDANCESALES Organic Sales Growth: +3% to +5% Net Sales Growth: +2% to +4% Includes a 1% negative impact from foreign exchange and acquisitions and divestitures FY ‘25 Organic Sales Growth (Maintain) +3% to +5% Net Sales Growth (Maintain) +2% to +4%
Slide 18: FY 2025 Guidance: Earnings Per Share
FY 2025 GUIDANCEEARNINGS PER SHARE Core EPS Growth: +5% to +7% Outlooking $0.2bn after-tax headwind from commodities Outlooking $0.3bn after-tax headwind from foreign exchange 2-point foreign exchange headwind results in currency neutral core EPS growth of +7% to +9% Prior fiscal year benefits from
Slide 19: FY 2025 Guidance: Cash Generation and Usage
FY 2025 GUIDANCECASH GENERATION AND USAGE Adjusted Free Cash Flow Productivity (Maintain) 90% Capital Spending, % Sales (Maintain) 4-5% Dividends (Maintain) ~$10bn Direct Share Repurchase (Maintain) $6 to $7bn
Slide 20: FY 2025 Guidance Summary
METRIC FY 2025 GUIDANCE Organic Sales Growth +3% to +5% Net Sales Growth +2% to +4% Core EPS Growth +5% to +7% All-In EPS Growth +10% to +12% Currency Neutral Core EPS Growth +7% to +9% Core Effective Tax Rate 20% to 21% Adjusted Free Cash Flow Productivity 90% Capital Spending, % of Sales 4-5% Divi
Slide 21: Potential Headwinds Not Included in Guidance
FY 2025 GUIDANCEPOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE Significant deceleration of market growth rates Significant currency weakness Significant commodity cost increases Major supply chain disruption or store closures Additional geo-political disruptions and economic volatility
Slide 22: ESG Resources
ESG RESOURCESESG FOR INVESTORS WEBSITE – pginvestor.com/esg Climate Waste Water Nature TCFD SASB CDP GRI 102 Equality & Inclusion Policies & Practices Community Impact Employee Representation Board Representation EEO-1 Commitment to Governance Risk Oversight & Committee Structure Proxy Statement Gov
Slide 23: Slide 23
Slide 24: 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