P&G Announces Fiscal Year 2025 First Quarter Results
P&G reported Q1 fiscal year 2025 results with net sales of $21.7 billion, a 1% decrease year-over-year. Organic sales grew 2%, driven by 1% increases in both pricing and organic volume. Diluted EPS decreased 12% to $1.61 due to higher restructuring charges, while core EPS increased 5% to $1.93. Operating cash flow was $4.3 billion, and adjusted free cash flow productivity was 82%. The company returned $4.4 billion to shareholders via dividends and share repurchases.
P&G maintained its fiscal 2025 guidance, projecting 2-4% all-in sales growth and 3-5% organic sales growth. The company expects diluted EPS growth of 10-12% and core EPS growth of 5-7%. P&G anticipates a $200 million after-tax commodity cost headwind and neutral foreign exchange impact for fiscal 2025.
P&G ha riportato i risultati del primo trimestre dell'anno fiscale 2025 con vendite nette di 21,7 miliardi di dollari, un calo dell'1% rispetto all'anno precedente. Le vendite organiche sono cresciute del 2%, sostenute da un aumento dell'1% sia nei prezzi che nel volume organico. L'EPS diluito è diminuito del 12% a 1,61 dollari, a causa di maggiori oneri per ristrutturazione, mentre l'EPS core è aumentato del 5% a 1,93 dollari. Il flusso di cassa operativo è stato di 4,3 miliardi di dollari e la produttività del flusso di cassa libero aggiustato è stata dell'82%. L'azienda ha restituito 4,4 miliardi di dollari agli azionisti tramite dividendi e riacquisti di azioni.
P&G ha mantenuto la guida per l'anno fiscale 2025, prevedendo una crescita delle vendite complessive del 2-4% e una crescita delle vendite organiche del 3-5%. L'azienda si aspetta una crescita dell'EPS diluito del 10-12% e una crescita dell'EPS core del 5-7%. P&G prevede un impatto negativo di 200 milioni di dollari sui costi delle materie prime, dopo le tasse, e un impatto neutro del cambio estero per l'anno fiscale 2025.
P&G reportó los resultados del primer trimestre del año fiscal 2025 con ventas netas de 21,7 mil millones de dólares, una disminución del 1% en comparación con el año anterior. Las ventas orgánicas crecieron un 2%, impulsadas por aumentos del 1% tanto en precios como en volumen orgánico. El EPS diluido disminuyó un 12% a 1,61 dólares debido a mayores cargos por reestructuración, mientras que el EPS básico aumentó un 5% a 1,93 dólares. El flujo de caja operativo fue de 4,3 mil millones de dólares y la productividad del flujo de caja libre ajustado fue del 82%. La empresa devolvió 4,4 mil millones de dólares a los accionistas a través de dividendos y recompra de acciones.
P&G mantuvo su guía para el año fiscal 2025, proyectando un crecimiento de ventas totales del 2-4% y un crecimiento de ventas orgánicas del 3-5%. La empresa espera un crecimiento del EPS diluido del 10-12% y un crecimiento del EPS básico del 5-7%. P&G anticipa un impacto negativo de 200 millones de dólares en los costos de materias primas después de impuestos y un impacto neutral del tipo de cambio para el año fiscal 2025.
P&G는 2025 회계연도 1분기 실적을 보고하며 227억 달러의 순 판매를 기록했으며, 이는 작년 대비 1% 감소한 수치입니다. 유기적 판매가 2% 증가했습니다, 이는 가격과 유기적 물량 모두 1% 증가한 데 힘입은 것입니다. 희석 EPS는 1.61달러로 12% 감소했습니다, 재구성 비용 증가로 인한 것이며, 핵심 EPS는 5% 증가하여 1.93 달러에 달했습니다. 운영 현금 흐름은 43억 달러였으며, 조정된 자유 현금 흐름 생산성은 82%였습니다. 회사는 배당금 및 자사주 매입을 통해 주주에게 44억 달러를 반환했습니다.
P&G는 2025 회계 연도 지침을 유지하며 2-4%의 전체 판매 성장과 3-5%의 유기적 판매 성장을 전망하고 있습니다. 회사는 희석 EPS 성장률 10-12%와 핵심 EPS 성장률 5-7%를 기대하고 있습니다. P&G는 2025 회계 연도에 2억 달러의 세후 원자재 비용 부담과 중립적인 외환 영향을 예상하고 있습니다.
P&G a rapporté les résultats du premier trimestre de l'exercice fiscal 2025 avec un chiffre d'affaires net de 21,7 milliards de dollars, ce qui représente une baisse de 1 % par rapport à l'année précédente. Les ventes organiques ont augmenté de 2%, soutenues par une augmentation de 1 % tant au niveau des prix que du volume organique. Le BPA dilué a diminué de 12 % pour s'établir à 1,61 dollar, en raison de coûts de restructuration plus élevés, tandis que le BPA de base a augmenté de 5 % pour atteindre 1,93 dollar. Le flux de trésorerie d'exploitation s'est établi à 4,3 milliards de dollars, et la productivité du flux de trésorerie libre ajusté était de 82 %. L'entreprise a restitué 4,4 milliards de dollars aux actionnaires sous forme de dividendes et de rachats d'actions.
P&G a maintenu ses prévisions pour l'exercice 2025, projetant une croissance des ventes globale de 2 à 4 % et une croissance des ventes organiques de 3 à 5 %. L'entreprise prévoit une croissance du BPA dilué de 10 à 12 % et une croissance du BPA de base de 5 à 7 %. P&G anticipe un impact négatif de 200 millions de dollars sur les coûts des matières premières après impôts et un impact neutre des taux de change pour l'exercice 2025.
P&G berichtete über die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 mit Nettoverkäufen von 21,7 Milliarden US-Dollar, was einem Rückgang von 1 % im Vergleich zum Vorjahr entspricht. Die organischen Verkäufe wuchsen um 2%, unterstützt durch 1%-ige Steigerungen sowohl bei den Preisen als auch im organischen Volumen. Der verwässerte EPS sank um 12 % auf 1,61 US-Dollar aufgrund höherer Umstrukturierungskosten, während der Kern-EPS um 5 % auf 1,93 US-Dollar stieg. Der operative Cashflow betrug 4,3 Milliarden US-Dollar, und die Produktivität des bereinigten freien Cashflows lag bei 82 %. Das Unternehmen gab 4,4 Milliarden US-Dollar an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück.
P&G hielt seine Prognose für das Geschäftsjahr 2025 aufrecht und prognostizierte ein Gesamtergebniswachstum von 2-4% und ein organisches Ergebniswachstum von 3-5%. Das Unternehmen erwartet ein EPS-Wachstum von 10-12% und ein Wachstum des Kern-EPS von 5-7%. P&G rechnet mit einem Rückschlag von 200 Millionen US-Dollar bei den Rohstoffkosten nach Steuern und einem neutralen Währungsumrechnungseffekt für das Geschäftsjahr 2025.
- Organic sales increased 2% year-over-year
- Core EPS grew 5% to $1.93
- Operating cash flow of $4.3 billion with 82% adjusted free cash flow productivity
- Returned $4.4 billion to shareholders via dividends and share repurchases
- Maintained fiscal 2025 guidance for sales and EPS growth
- Net sales decreased 1% to $21.7 billion
- Diluted EPS declined 12% to $1.61 due to higher restructuring charges
- Beauty segment organic sales decreased 2%
- Skin Care organic sales declined more than 20%
- Baby Care organic sales decreased mid-single-digits
Insights
P&G's Q1 FY2025 results show resilience in a challenging environment. Organic sales grew 2%, driven by a 1% increase in pricing and 1% in volume. Core EPS rose
The company's segment performance was mixed. Beauty and Baby Care faced headwinds, while Grooming, Health Care and Fabric & Home Care saw organic growth. The substantial liquidation in Argentina resulted in significant non-core restructuring charges, impacting diluted EPS.
P&G maintained its full-year guidance, projecting
Investors should note the
P&G's Q1 results reflect its ability to navigate a complex global market. The
The performance varied across segments, with Grooming, Health Care and Fabric & Home Care showing strength. However, the significant decline in Skin Care, particularly the SK-II brand, warrants attention. This could indicate shifting consumer preferences or economic pressures in certain markets, especially Greater China.
P&G's strategic focus on daily-use categories and its "superiority" approach appears to be paying off, enabling it to maintain market share in competitive segments. The company's ability to offset inflationary pressures through pricing and productivity gains is important for maintaining profitability.
The restructuring in certain Enterprise Markets, while causing short-term charges, may lead to improved long-term efficiency. Investors should monitor how these changes impact future performance, especially in emerging markets.
Net Sales -
Diluted EPS
MAINTAINS FISCAL YEAR SALES, EPS GROWTH AND CASH RETURN GUIDANCE
Operating cash flow was
First Quarter ($ billions, except EPS) |
||||||||
GAAP |
2025 |
2024 |
% Change |
|
Non-GAAP* |
2025 |
2024 |
% Change |
Net Sales |
21.7 |
21.9 |
(1)% |
|
Organic Sales |
n/a |
n/a |
|
Diluted EPS |
1.61 |
1.83 |
(12)% |
|
Core EPS |
1.93 |
1.83 |
|
*Please refer to Exhibit 1 - Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures. |
||||||||
“Our organic sales growth, earnings and cash results in the first quarter keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer. “We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization. We have confidence this remains the right strategy to deliver balanced growth and value creation.”
July - September Quarter Discussion
Net sales in the first quarter of fiscal year 2025 were
July - September 2024 |
Volume |
Foreign Exchange |
Price |
Mix |
Other (2) |
Net Sales |
Organic Volume |
Organic Sales |
Net Sales Drivers (1) |
||||||||
Beauty |
(2)% |
(1)% |
|
(3)% |
—% |
(5)% |
—% |
(2)% |
Grooming |
|
(2)% |
|
(3)% |
—% |
—% |
|
|
Health Care |
(1)% |
(1)% |
|
|
(1)% |
|
(1)% |
|
Fabric & Home Care |
|
(1)% |
—% |
|
—% |
|
|
|
Baby, Feminine & Family Care |
(1)% |
(1)% |
—% |
—% |
—% |
(2)% |
(1)% |
—% |
Total P&G |
—% |
(1)% |
|
—% |
(1)% |
(1)% |
|
|
(1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
|
||||||||
-
Beauty segment organic sales decreased two percent versus year ago. Hair Care organic sales increased low single digits driven by volume growth and favorable premium product mix in
North America ,Europe andLatin America , partially offset by volume declines primarily inGreater China . Personal Care organic sales increased high single digits driven by innovation-based volume growth and favorable product mix. Skin Care organic sales declined more than20% due to volume declines and unfavorable mix from lower sales of the super-premium SK-II brand.
- Grooming segment organic sales increased three percent versus year ago behind innovation-driven volume growth partially offset by unfavorable geographic mix.
-
Health Care segment organic sales increased four percent versus year ago. Oral Care organic sales increased low single digits due to premium product mix, partially offset by volume declines mainly in
Greater China . Personal Health Care organic sales increased mid-single digits due to favorable mix from growth of respiratory products and increased pricing.
-
Fabric and Home Care segment organic sales increased three percent versus year ago. Fabric Care organic sales increased low single digits due to favorable geographic mix from growth in
North America andEurope . Home Care organic sales increased mid-single digits due to volume growth and favorable product mix.
- Baby, Feminine and Family Care segment organic sales were unchanged versus year ago. Baby Care organic sales decreased mid-single-digits due to volume declines partially offset by favorable product mix. Feminine Care organic sales increased low single digits driven by favorable product mix and increased pricing, partially offset by volume declines in international markets. Family Care organic sales increased mid-single digits driven by strong volume growth.
Diluted net earnings per share decreased by
Reported gross margin for the quarter increased 10 basis points versus the prior year. Core gross margin for the quarter was unchanged versus the prior year and increased 10 basis points on a currency-neutral basis. Benefits of 170 basis points from gross productivity savings and 30 basis points from increased pricing were partially offset by 90 basis points of unfavorable commodity costs, 60 basis points of unfavorable mix and 40 basis points of product reinvestments.
Reported selling, general and administrative expense (SG&A) as a percentage of sales decreased 20 basis points versus year ago. Core selling, general and administrative expense (SG&A) as a percentage of sales decreased 30 basis points versus year ago and increased 30 basis points on a currency-neutral basis. The increase was driven by 110 basis points of reinvestments, partially offset by 60 basis points of productivity savings and 20 basis points of organic sales growth leverage. Foreign exchange headwinds in the current period were more than offset by the impact of prior year period foreign exchange headwinds.
Reported operating margin for the quarter increased 30 basis points versus the prior year. Core operating margin for the quarter also increased 30 basis points versus the prior year and decreased 10 basis points on a currency-neutral basis. Core operating margin included gross productivity savings of 230 basis points.
Limited Market Portfolio Restructuring
In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including
Fiscal Year 2025 Guidance
P&G maintained its guidance range for fiscal 2025 all-in sales growth to be in the range of two to four percent versus the prior year. The combined headwinds from foreign exchange and divestitures are expected to negatively impact all-in sales growth by approximately one percentage point. The Company also maintained its outlook for organic sales growth in the range of three to five percent.
P&G maintained its fiscal 2025 diluted net earnings per share growth to be in the range of
P&G now expects a commodity cost headwind of approximately
In addition, the prior fiscal year included benefits from minor brand divestitures and favorable tax impacts that are unlikely to repeat to the same extent in fiscal year 2025. Combined, these are an additional
The Company is unable to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.
P&G continues to expect a core effective tax rate to be in the range of
Capital spending is estimated to be in the range of four to five percent of fiscal 2025 net sales.
P&G continues to expect adjusted free cash flow productivity of
Forward-Looking Statements
Certain statements in this release, 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 "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result" and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law.
Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, currency exchange or pricing controls; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, sanctions or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, acts of war or terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pension and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company's overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws and regulations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity and data protection, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to successfully achieve our ambition of reducing our greenhouse gas emissions and delivering progress towards our environmental sustainability priorities. For additional information concerning factors that could cause actual results and events to differ materially from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.
About Procter & Gamble
P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
|||||||||
Consolidated Earnings Information |
|||||||||
|
Three Months Ended September 30 |
||||||||
Amounts in millions except per share amounts |
2024 |
|
2023 |
|
% Chg |
||||
NET SALES |
$ |
21,737 |
|
|
$ |
21,871 |
|
|
(1)% |
Cost of products sold |
|
10,421 |
|
|
|
10,501 |
|
|
(1)% |
GROSS PROFIT |
|
11,316 |
|
|
|
11,371 |
|
|
—% |
Selling, general and administrative expense |
|
5,519 |
|
|
|
5,604 |
|
|
(2)% |
OPERATING INCOME |
|
5,797 |
|
|
|
5,767 |
|
|
|
Interest expense |
|
(238 |
) |
|
|
(225 |
) |
|
|
Interest income |
|
135 |
|
|
|
128 |
|
|
|
Other non-operating income/(expense), net |
|
(554 |
) |
|
|
132 |
|
|
(520)% |
EARNINGS BEFORE INCOME TAXES |
|
5,140 |
|
|
|
5,802 |
|
|
(11)% |
Income taxes |
|
1,152 |
|
|
|
1,246 |
|
|
(8)% |
NET EARNINGS |
|
3,987 |
|
|
|
4,556 |
|
|
(12)% |
Less: Net earnings attributable to noncontrolling interests |
|
28 |
|
|
|
35 |
|
|
(20)% |
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE |
$ |
3,959 |
|
|
$ |
4,521 |
|
|
(12)% |
|
|
|
|
|
|
||||
EFFECTIVE TAX RATE |
|
22.4 |
% |
|
|
21.5 |
% |
|
|
|
|
|
|
|
|
||||
NET EARNINGS PER COMMON SHARE (1) |
|
|
|
|
|
||||
Basic |
$ |
1.65 |
|
|
$ |
1.89 |
|
|
(13)% |
Diluted |
$ |
1.61 |
|
|
$ |
1.83 |
|
|
(12)% |
|
|
|
|
|
|
||||
DIVIDENDS PER COMMON SHARE |
$ |
1.0065 |
|
|
$ |
0.9407 |
|
|
|
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
2,466.0 |
|
|
|
2,475.2 |
|
|
|
|
|
|
|
|
|
||||
COMPARISONS AS A % OF NET SALES |
|
|
|
|
Basis Pt Chg |
||||
Gross profit |
|
52.1 |
% |
|
|
52.0 |
% |
|
10 |
Selling, general and administrative expense |
|
25.4 |
% |
|
|
25.6 |
% |
|
(20) |
Operating income |
|
26.7 |
% |
|
|
26.4 |
% |
|
30 |
Earnings before income taxes |
|
23.6 |
% |
|
|
26.5 |
% |
|
(290) |
Net earnings |
|
18.3 |
% |
|
|
20.8 |
% |
|
(250) |
Net earnings attributable to Procter & Gamble |
|
18.2 |
% |
|
|
20.7 |
% |
|
(250) |
(1) |
Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. |
|
|
||
| Certain columns and rows may not add due to rounding. | ||
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
|||||||||||
Consolidated Earnings Information |
|||||||||||
|
Three Months Ended September 30, 2024 |
||||||||||
Amounts in millions |
Net Sales |
% Change Versus Year Ago |
Earnings/(Loss) Before Income Taxes |
% Change Versus Year Ago |
Net Earnings/(Loss) |
% Change Versus Year Ago |
|||||
Beauty |
$ |
3,892 |
(5)% |
$ |
1,067 |
|
(15)% |
$ |
840 |
|
(13)% |
Grooming |
|
1,723 |
—% |
|
522 |
|
(2)% |
|
426 |
|
|
Health Care |
|
3,147 |
|
|
953 |
|
|
|
741 |
|
|
Fabric & Home Care |
|
7,710 |
|
|
2,077 |
|
|
|
1,621 |
|
|
Baby, Feminine & Family Care |
|
5,102 |
(2)% |
|
1,383 |
|
(2)% |
|
1,066 |
|
(1)% |
Corporate |
|
163 |
N/A |
|
(862 |
) |
N/A |
|
(707 |
) |
N/A |
Total Company |
$ |
21,737 |
(1)% |
$ |
5,140 |
|
(11)% |
$ |
3,987 |
|
(12)% |
|
Three Months Ended September 30, 2024 |
||||||||||||
Net Sales Drivers (1) |
Volume |
|
Organic Volume |
|
Foreign Exchange |
|
Price |
|
Mix |
|
Other (2) |
|
Net Sales |
Beauty |
(2)% |
|
—% |
|
(1)% |
|
|
|
(3)% |
|
—% |
|
(5)% |
Grooming |
|
|
|
|
(2)% |
|
|
|
(3)% |
|
—% |
|
—% |
Health Care |
(1)% |
|
(1)% |
|
(1)% |
|
|
|
|
|
(1)% |
|
|
Fabric & Home Care |
|
|
|
|
(1)% |
|
—% |
|
|
|
—% |
|
|
Baby, Feminine & Family Care |
(1)% |
|
(1)% |
|
(1)% |
|
—% |
|
—% |
|
—% |
|
(2)% |
Total Company |
—% |
|
|
|
(1)% |
|
|
|
—% |
|
(1)% |
|
(1)% |
(1) |
|
Net sales percentage changes are approximations based on quantitative formulas that are consistently applied. |
(2) |
|
Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales. |
Certain columns and rows may not add due to rounding. |
||
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
|||||||
Consolidated Statements of Cash Flows |
|||||||
|
Three Months Ended September 30 |
||||||
Amounts in millions |
2024 |
|
2023 |
||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD |
$ |
9,482 |
|
|
$ |
8,246 |
|
OPERATING ACTIVITIES |
|
|
|
||||
Net earnings |
|
3,987 |
|
|
|
4,556 |
|
Depreciation and amortization |
|
728 |
|
|
|
702 |
|
Share-based compensation expense |
|
105 |
|
|
|
125 |
|
Deferred income taxes |
|
184 |
|
|
|
102 |
|
Loss/(gain) on sale of assets |
|
794 |
|
|
|
(3 |
) |
Change in accounts receivable |
|
(134 |
) |
|
|
(830 |
) |
Change in inventories |
|
(188 |
) |
|
|
(142 |
) |
Change in accounts payable and accrued and other liabilities |
|
(648 |
) |
|
|
857 |
|
Change in other operating assets and liabilities |
|
(558 |
) |
|
|
(671 |
) |
Other |
|
32 |
|
|
|
208 |
|
TOTAL OPERATING ACTIVITIES |
|
4,302 |
|
|
|
4,904 |
|
INVESTING ACTIVITIES |
|
|
|
||||
Capital expenditures |
|
(993 |
) |
|
|
(925 |
) |
Proceeds from asset sales |
|
45 |
|
|
|
3 |
|
Acquisitions, net of cash acquired |
|
(6 |
) |
|
|
— |
|
Other investing activity |
|
(154 |
) |
|
|
(300 |
) |
TOTAL INVESTING ACTIVITIES |
|
(1,108 |
) |
|
|
(1,222 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Dividends to shareholders |
|
(2,445 |
) |
|
|
(2,290 |
) |
Additions to short-term debt with original maturities of more than three months |
|
4,090 |
|
|
|
2,179 |
|
Reductions in short-term debt with original maturities of more than three months |
|
(571 |
) |
|
|
(1,906 |
) |
Net additions/(reductions) to other short-term debt |
|
(444 |
) |
|
|
2,172 |
|
Reductions in long-term debt |
|
(70 |
) |
|
|
(1,004 |
) |
Treasury stock purchases |
|
(1,939 |
) |
|
|
(1,500 |
) |
Impact of stock options and other |
|
745 |
|
|
|
312 |
|
TOTAL FINANCING ACTIVITIES |
|
(634 |
) |
|
|
(2,038 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
116 |
|
|
|
(156 |
) |
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
2,675 |
|
|
|
1,487 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
$ |
12,156 |
|
|
$ |
9,733 |
|
Certain columns and rows may not add due to rounding. |
|||||||
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
|||||
Condensed Consolidated Balance Sheets |
|||||
Amounts in millions |
September 30, 2024 |
|
June 30, 2024 |
||
Cash and cash equivalents |
$ |
12,156 |
|
$ |
9,482 |
Accounts receivable |
|
6,314 |
|
|
6,118 |
Inventories |
|
7,287 |
|
|
7,016 |
Prepaid expenses and other current assets |
|
1,692 |
|
|
2,095 |
TOTAL CURRENT ASSETS |
|
27,449 |
|
|
24,709 |
Property, plant and equipment, net |
|
22,506 |
|
|
22,152 |
Goodwill |
|
40,970 |
|
|
40,303 |
Trademarks and other intangible assets, net |
|
22,053 |
|
|
22,047 |
Other noncurrent assets |
|
13,503 |
|
|
13,158 |
TOTAL ASSETS |
$ |
126,482 |
|
$ |
122,370 |
|
|
|
|
||
Accounts payable |
$ |
15,350 |
|
$ |
15,364 |
Accrued and other liabilities |
|
10,661 |
|
|
11,073 |
Debt due within one year |
|
10,409 |
|
|
7,191 |
TOTAL CURRENT LIABILITIES |
|
36,420 |
|
|
33,627 |
Long-term debt |
|
25,744 |
|
|
25,269 |
Deferred income taxes |
|
6,420 |
|
|
6,516 |
Other noncurrent liabilities |
|
5,757 |
|
|
6,398 |
TOTAL LIABILITIES |
|
74,341 |
|
|
71,811 |
TOTAL SHAREHOLDERS' EQUITY |
|
52,141 |
|
|
50,559 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
126,482 |
|
$ |
122,370 |
Certain columns and rows may not add due to rounding. |
|||||
The Procter & Gamble Company
Exhibit 1: Non-GAAP Measures
The following provides definitions of the non-GAAP measures used in Procter & Gamble's October 18, 2024 earnings release and the reconciliation to the most closely related GAAP measures. We believe that these measures provide useful perspective on underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results. The non-GAAP measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes. These measures may be useful to investors, as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management. Certain of these measures are also used to evaluate senior management and are a factor in determining their at-risk compensation. These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measures but rather as supplemental information to our business results. These non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures because the Company cannot predict the timing and amounts of discrete items such as acquisition and divestitures, which could significantly impact GAAP results.
The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following items:
-
Incremental restructuring: The Company has historically had an ongoing level of restructuring activities of approximately
$250 $500 million Argentina andNigeria , to address challenging macroeconomic and fiscal conditions. During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations inArgentina . The adjustment to Core earnings includes the restructuring charges that exceed the normal, recurring level of restructuring charges.
We do not view the above items to be part of our sustainable results, and their exclusion from core earnings measures provides a more comparable measure of year-on-year results. These items are also excluded when evaluating senior management in determining their at-risk compensation.
Organic sales growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions and divestitures and foreign exchange from year-over-year comparisons. We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. This measure is used in assessing the achievement of management goals for at-risk compensation.
Core EPS and Currency-neutral EPS: Core earnings per share, or Core EPS, is a measure of diluted net earnings per common share (diluted EPS) adjusted for items as indicated. Currency-neutral EPS is a measure of the Company's Core EPS excluding the incremental current year impact of foreign exchange. Management views these non-GAAP measures as useful supplemental measures of Company performance over time.
Core gross margin and Currency-neutral Core gross margin: Core gross margin is a measure of the Company's gross margin adjusted for items as indicated. Currency-neutral Core gross margin is a measure of the Company's Core gross margin excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company’s operating efficiency over time.
Core selling, general and administrative (SG&A) expense as a percentage of sales and Currency-neutral Core SG&A expense as a percentage of sales: Core SG&A expense as a percentage of sales is a measure of the Company's selling, general and administrative expense as a percentage of net sales adjusted for items as indicated. Currency-neutral Core SG&A expense as a percentage of sales is a measure of the Company's Core selling, general and administrative expense as a percentage of net sales excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company's operating efficiency over time.
Core operating margin and Currency-neutral core operating margin: Core operating margin is a measure of the Company's operating margin adjusted for items as indicated. Currency-neutral core operating margin is a measure of the Company's core operating margin excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company’s operating efficiency over time.
Adjusted free cash flow: Adjusted free cash flow is defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the
Adjusted free cash flow productivity: Adjusted free cash flow productivity is defined as the ratio of adjusted free cash flow to net earnings excluding a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Reconciliation of Non-GAAP Measures |
|||||||||||||||
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
||||||||||||
Amounts in millions except per share amounts |
As Reported (GAAP) |
|
Incremental Restructuring |
|
Core (Non-GAAP) |
|
As Reported (GAAP) (1) |
||||||||
Cost of products sold |
$ |
10,421 |
|
|
$ |
20 |
|
|
$ |
10,441 |
|
|
$ |
10,501 |
|
Gross profit |
|
11,316 |
|
|
|
(20 |
) |
|
|
11,295 |
|
|
|
11,371 |
|
Gross margin |
|
52.1 |
% |
|
|
(0.1 |
)% |
|
|
52.0 |
% |
|
|
52.0 |
% |
Currency impact to Core gross margin |
|
|
|
|
|
0.2 |
% |
|
|
||||||
Currency-neutral Core gross margin |
|
|
|
|
|
52.1 |
% |
|
|
||||||
Selling, general and administrative expense |
|
5,519 |
|
|
|
(25 |
) |
|
|
5,494 |
|
|
|
5,604 |
|
Selling, general and administrative expense as a % of net sales |
|
25.4 |
% |
|
|
(0.1 |
)% |
|
|
25.3 |
% |
|
|
25.6 |
% |
Currency impact to Core selling, general and administrative expense as a % of net sales |
|
|
|
|
|
0.6 |
% |
|
|
||||||
Currency-neutral Core selling, general and administrative expense as a % of net sales |
|
|
|
|
|
25.9 |
% |
|
|
||||||
Operating income |
|
5,797 |
|
|
|
5 |
|
|
|
5,802 |
|
|
|
5,767 |
|
Operating margin |
|
26.7 |
% |
|
|
— |
% |
|
|
26.7 |
% |
|
|
26.4 |
% |
Currency impact to Core operating margin |
|
|
|
|
|
(0.4 |
)% |
|
|
||||||
Currency-neutral Core operating margin |
|
|
|
|
|
26.3 |
% |
|
|
||||||
Income taxes |
|
1,152 |
|
|
|
(7 |
) |
|
|
1,145 |
|
|
|
1,246 |
|
Net earnings attributable to P&G |
|
3,959 |
|
|
|
801 |
|
|
|
4,761 |
|
|
|
4,521 |
|
|
|
|
|
|
Core EPS |
|
|
||||||||
Diluted net earnings per common share (2) |
$ |
1.61 |
|
|
$ |
0.32 |
|
|
$ |
1.93 |
|
|
$ |
1.83 |
|
Currency impact to Core EPS |
$ |
(0.02 |
) |
|
|
||||||||||
Currency-neutral Core EPS |
$ |
1.91 |
|
|
|
||||||||||
Diluted weighted average common shares outstanding |
|
2,466.0 |
|
|
|
|
|
|
|
2,475.2 |
|
||||
Common shares outstanding - September 30, 2024 |
|
2,355.0 |
|
|
|
|
|
|
|
||||||
(1) For the period ending September 30, 2023, there were no adjustments to or reconciling items for Core EPS.
|
|||||||||||||||
|
|||||||||||||||
CHANGE VERSUS YEAR AGO |
|
|
|
||||||||||||
Gross margin |
|
10 |
|
|
BPS |
||||||||||
Core gross margin |
|
— |
|
|
BPS |
||||||||||
Currency-neutral Core gross margin |
|
10 |
|
|
BPS |
||||||||||
Selling, general and administrative expense as a % of net sales |
|
(20 |
) |
|
BPS |
||||||||||
Core selling, general and administrative expense as a % of net sales |
|
(30 |
) |
|
BPS |
||||||||||
Currency-neutral Core selling, general and administrative as a % of net sales |
|
30 |
|
|
BPS |
||||||||||
Operating margin |
|
30 |
|
|
BPS |
||||||||||
Core operating margin |
|
30 |
|
|
BPS |
||||||||||
Currency-neutral Core operating margin |
|
(10 |
) |
|
BPS |
||||||||||
Diluted EPS |
|
(12 |
)% |
|
|
||||||||||
Core EPS |
|
5 |
% |
|
|
||||||||||
Currency-neutral Core EPS |
|
4 |
% |
|
|
||||||||||
Organic sales growth:
July - September 2024 |
Net Sales Growth |
|
Foreign Exchange Impact |
|
Acquisition & Divestiture Impact/Other (1) |
|
Organic Sales Growth |
Beauty |
(5)% |
|
|
|
|
|
(2)% |
Grooming |
—% |
|
|
|
|
|
|
Health Care |
|
|
|
|
|
|
|
Fabric & Home Care |
|
|
|
|
|
|
|
Baby, Feminine & Family Care |
(2)% |
|
|
|
|
|
—% |
Total Company |
(1)% |
|
|
|
|
|
|
(1) |
Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales. |
|
Total Company |
|
Net Sales Growth |
|
Combined Foreign Exchange & Acquisition/Divestiture Impact/Other (1) |
|
Organic Sales Growth |
FY 2025 (Estimate) |
|
+ |
|
+ |
|
+ |
(1) |
Combined Foreign Exchange & Acquisition/Divestiture Impact/Other includes foreign exchange impacts, the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales. |
|
Core EPS growth:
Total Company |
|
Diluted EPS Growth |
|
Impact of Incremental Non-Core Items (1) |
|
Core EPS Growth |
FY 2025 (Estimate) |
|
+ |
|
- |
|
+ |
(1) |
Includes the impact of Gillette indefinite-lived intangible asset impairment charge and incremental non-core restructuring charges incurred in fiscal 2024 and the impact of incremental non-core restructuring charges including the limited market portfolio restructuring with the substantial liquidation of its operations in |
|
Adjusted free cash flow (dollar amounts in millions):
Three Months Ended September 30, 2024 |
||||||
Operating Cash Flow |
|
Capital Spending |
|
|
|
Adjusted Free Cash Flow |
|
|
|
|
|
|
|
Adjusted free cash flow productivity (dollar amounts in millions):
Three Months Ended September 30, 2024 |
||||||||
Adjusted Free Cash Flow |
|
Net Earnings |
|
Adjustments to Net Earnings (1) |
|
Net Earnings as Adjusted |
|
Adjusted Free Cash Flow Productivity |
|
|
|
|
|
|
|
|
|
(1) |
Adjustments to Net earnings relate to a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in |
|
| Certain columns and rows may not add due to rounding. | ||
Category: PG-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017211206/en/
P&G Media:
Wendy Kennedy, 513.780.7212
Jennifer Corso, 513.983.2570
P&G Investor Relations:
John Chevalier, 513.983.9974
Source: Procter & Gamble
FAQ
What was P&G's (PG) organic sales growth in Q1 fiscal 2025?
How did P&G's (PG) core EPS perform in Q1 fiscal 2025?
What is P&G's (PG) guidance for fiscal 2025 organic sales growth?
How much cash did P&G (PG) return to shareholders in Q1 fiscal 2025?
What was the impact of restructuring charges on P&G's (PG) Q1 fiscal 2025 results?
