Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 FY2017 Earnings Presentation
23 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 26, 2017
Slide 1: Procter & Gamble Earnings Release: Q3 FY 2017 Results
Procter & Gamble Earnings Release:Q3 FY 2017 ResultsApril 26, 2017
Slide 2: Business Results Q3 FY 2017
Business ResultsQ3 FY 2017
Slide 3: Organic Sales Growth
Jan – Mar 17 (Q3 FY 17) ResultsOrganic Sales Growth Sales growth was volume driven, with organic volume growing +1%.
Slide 4: Core EPS Growth
Jan – Mar 17 (Q3 FY 17) ResultsCore EPS Growth Q3 Core operating margin was -10bps versus prior year including FX impact of -20bps. Productivity improvements contributed 260 basis points of margin benefit.
Slide 5: Currency-Neutral Core EPS Growth
Jan – Mar 17 (Q3 FY 17) ResultsCurrency-Neutral Core EPS Growth
Slide 6: Business Segment Results and Highlights Q3 FY 2017
Business Segment Results and HighlightsQ3 FY 2017
Slide 7: Beauty Segment
+1% Pricing, flat MixOrganic Sales: i Mid-single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share declined 0.6 points versus year agoNet Earnings: Productivity improvements and pricing were more than offset by unfavorable mix, marketing and overhead investment
Slide 8: Beauty Highlights
Hair Care organic sales were flat versus year ago. Developing markets were up mid-single digits driven by growth in LA. Developed markets were down mid-single digits with strong growth in Europe offset by competitive promotional activity and inventory reductions in the U.S. Skin & Personal Care orga
Slide 9: Grooming Segment
-2% Pricing, -4% Mix Organic Sales: i Double digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share declined 0.5 points versus year agoNet Earnings: Productivity savings on COGS and marketing were more than offset by sales decline, overhead investments and geographi
Slide 10: Grooming Highlights
Grooming organic sales declined mid-single digits driven by softness in developed markets partially offset by high single digits growth in Appliances led by innovation. Developing market sales grew mid-single digits driven by premium innovation and price increases. Developed market sales declined do
Slide 11: Health Care Segment
+1% Pricing, +1% MixOrganic Sales: h Mid-single digits in Developed markets, h High single digits in Developing marketsGlobal value share was flat versus year agoNet Earnings: Strong volume growth, productivity improvements, and pricing were partially offset by currency headwinds, geographic mix and
Slide 12: Health Care Highlights
Oral Care organic sales were up low single digits versus year ago driven by strong volume growth on Power toothbrush behind premium innovation and investments in the business. Developed market sales increased low single digits with strong growth in Europe and Developing markets increased mid-single
Slide 13: Fabric & Home Care Segment
Flat Pricing, Flat MixOrganic Sales: h Low single digits in Developed markets, h Low single digits in Developing marketsGlobal value share was flat versus year agoNet Earnings: Productivity improvements, pricing and volume growth were more than offset by currency/commodity headwinds and product mix.
Slide 14: Fabric & Home Care Highlights
Fabric Care organic sales grew low single digits versus year ago. Developed markets increased mid-single digits behind innovation driven volume growth across Laundry and Fabric Enhancers. Developing markets were down low single digits as price increases were more than offset by competitive activity
Slide 15: Baby, Feminine & Family Care Segment
Flat Pricing, Flat MixOrganic Sales: h Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share was flat versus year agoNet Earnings: Volume growth and productivity savings were more than offset by currency headwinds, value investments, unfavorable mix and
Slide 16: Baby, Feminine & Family Care Highlights
Baby Care organic sales declined low single digits versus year ago. Developed markets were down low single digits with heavy promotional activity on Taped Diapers contributing to market contraction in the U.S. partially offset by strong growth on Pants. Developing markets were down low single digits
Slide 17: FY 2017 Guidance
FY 2017 Guidance
Slide 18: FY 2017 Guidance: Sales
FY ‘17 Organic Sales Growth +2% to +3% Currency & minor brand divestitures impact -2% to -3% All-in Sales Growth -1% to Flat Organic sales up 2% to 3%Expect all-in sales to be down a point to in-line with FY 2016. FY 2017 GuidanceSales
Slide 19: FY 2017 Guidance: Core EPS
FY ‘17 Core EPS Growth Up Mid-Single Digits All-in EPS Growth +48% to +50% * All-in guidance includes the gain for the divestiture of 41 beauty brands to Coty Inc. Expect Core EPS growth in the mid-single digitsAt current rates and prices, FX and commodities combined are about a $0.24 per share drag
Slide 20: FY 2017 Guidance: Cash Generation & Usage
Adjusted Free Cash Flow Productivity: ~95%Capital Spending, % Sales: 5% to 5.5%Dividends: $7B+Share Reduction from Coty Transaction: $9.4BDirect Share Repurchase: $5B+ FY 2017 GuidanceCash Generation & Usage
Slide 21: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth rates Further political and economic volatilityFurther foreign currency weaknessFurther commodity cost increases FY 2017 GuidancePotential Headwinds Not Included in Guidance
Slide 22: P&G
P&G
Slide 23: 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,