Net Sales +5%; Organic
Sales +4%;
Diluted EPS and Core EPS
$1.61, each -1%
MAINTAINS FISCAL YEAR
2022 GUIDANCE
The Procter & Gamble Company (NYSE:PG) reported first
quarter fiscal year 2022 net sales of $20.3 billion, an increase of
five percent versus the prior year. Excluding the impacts of
foreign exchange, acquisitions and divestitures, organic sales
increased four percent. Diluted net earnings per share were $1.61,
a decrease of one percent versus prior year EPS.
Operating cash flow was $4.6 billion for the quarter. Adjusted
free cash flow productivity was 92%. The Company returned nearly $5
billion of cash to shareholders via $2 billion of dividend payments
and nearly $3 billion of common stock repurchases.
$ billions, except EPS
First Quarter
GAAP
2022
2021
% Change
Non-GAAP*
2022
2021
% Change
Net Sales
20.3
19.3
5%
Organic Sales
n/a
n/a
4%
Diluted EPS
1.61
1.63
(1)%
Core EPS
1.61
1.63
(1)%
*Please refer to Exhibit 1 -
Non-GAAP Measures for the definition and reconciliation of these
measures to the related GAAP measures.
“We delivered solid results in our first quarter of fiscal 2022
in a challenging cost and operating environment,” said David
Taylor, Chairman, President and Chief Executive Officer. “These
results keep us on track to deliver our top-line, bottom-line and
cash targets for the fiscal year. We remain focused on executing
our strategies of superiority, productivity, constructive
disruption and continually improving P&G’s organization
structure and culture. These strategies enabled us to build strong
momentum before the COVID crisis and accelerate progress as we
navigate through the crisis, and they remain the right strategies
to deliver balanced growth and value creation.”
July - September Quarter Discussion
Net sales in the first quarter of fiscal year 2022 were $20.3
billion, an increase of five percent versus the prior year.
Favorable foreign exchange had a positive impact of one percentage
point on sales for the quarter. Excluding the impacts of foreign
exchange, acquisitions and divestitures, organic sales increased
four percent driven by a two percent increase in volume, a one
percent increase in pricing and a positive mix impact of one
percent. The volume increase was driven by strong consumer demand
for superior products and innovation, partially offset by a high
base period in some markets due to rebuilding of inventories by
retailers. Positive mix was driven by the disproportionate volume
growth of the North America region, the Health Care business and
premium products, all of which have higher than company average
selling prices.
July - September
2021
Volume
Foreign
Exchange
Price
Mix
Other (2)
Net
Sales
Organic
Volume
Organic
Sales
Net Sales
Drivers (1)
Beauty
—%
3%
2%
—%
—%
5%
—%
2%
Grooming
1%
1%
2%
2%
(1)%
5%
1%
4%
Health Care
3%
1%
1%
3%
—%
8%
3%
7%
Fabric & Home Care
2%
1%
2%
1%
(1)%
5%
2%
5%
Baby, Feminine & Family Care
1%
1%
(1)%
2%
—%
3%
1%
2%
Total P&G
2%
1%
1%
1%
—%
5%
2%
4%
(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.
- Beauty segment organic sales increased two percent versus year
ago. Hair Care organic sales increased low single digits due to
pricing and favorable mix from premium innovation in treatments and
conditioners. Skin and Personal Care organic sales increased low
single digits primarily driven by pricing and higher volumes,
partially offset by negative geographic mix.
- Grooming segment organic sales increased four percent versus
year ago. Shave Care organic sales increased mid-single digits due
to pricing and positive mix from premium innovation. Appliances
organic sales decreased mid-single digits. Positive mix was more
than offset by a volume decline versus a base period which
benefited from increased consumption due to COVID.
- Health Care segment organic sales increased seven percent
versus year ago. Oral Care organic sales increased low single
digits due to positive geographic and premium product mix,
partially offset by a slight decline in shipment volumes. Personal
Health Care organic sales increased double digits primarily due to
market recovery of respiratory products, innovation and pricing in
some markets.
- Fabric and Home Care segment organic sales increased five
percent versus year ago. Fabric Care organic sales increased high
single digits driven by innovation, pricing and mix. Positive mix
was driven by disproportionate growth in North America and premium
product forms. Home Care organic sales increased low single digits
primarily due to pricing, partially offset by a base period that
benefited from pandemic-related consumption increases in North
America.
- Baby, Feminine and Family Care segment organic sales increased
two percent versus year ago. Baby Care organic sales increased
mid-single digits due to positive mix from the disproportionate
growth of premium pants and taped diapers, pricing and
innovation-driven volume growth. Feminine Care organic sales
increased mid-single digits primarily driven by innovation, pricing
and mix. Positive mix was driven by disproportionate growth in
North America and premium products. Family Care organic sales
decreased mid-single digits. Higher volumes were more than offset
by increased promotional spending versus a base with historically
low promotional activity and unfavorable mix due to larger pack
sizes.
Diluted net earnings per share were $1.61 for the quarter, a one
percent decrease versus the prior year due to a decrease in net
earnings partially offset by a reduction in shares outstanding.
Currency-neutral net EPS decreased three percent versus the prior
year. Net earnings declined as the increase in net sales was more
than offset by a reduction in operating margin due to higher
commodity and freight costs as anticipated.
Gross margin for the quarter decreased 370 basis points versus
year ago, 390 basis points on a currency-neutral basis. The
decrease in gross margin was driven by 350 basis points of
commodity cost increases, 80 basis points of unfavorable mix
(primarily due to product and pack-size mix), 50 basis points of
higher transportation costs and 60 basis points of product and
packaging investments and other impacts. These decreases were
partially offset by 100 basis points of gross manufacturing
productivity savings (50 basis points net of higher transportation
costs) and 50 basis points of pricing benefits.
Selling, general and administrative expense (SG&A) as a
percentage of net sales decreased 100 basis points versus the prior
year, 110 basis points on a currency-neutral basis. The decrease
was driven by 100 basis points of cost leverage benefit from
increased sales, 80 basis points of savings from overhead and
marketing expenses and 40 basis points from a gain on the sale of
real estate, partially offset by 90 basis points of marketing
investments and 20 basis points of wage inflation net of other
impacts.
Operating margin for the quarter decreased 260 basis points
versus the prior year, 270 basis points on a currency-neutral
basis. Operating margin included productivity cost savings of 180
basis points (130 basis points net of higher transportation
costs).
Fiscal Year 2022 Guidance
P&G continues to expect fiscal year 2022 all-in sales growth
in the range of two to four percent versus the prior fiscal year.
Foreign exchange is now expected to be neutral to all-in sales
growth. The Company also maintained its outlook for organic sales
growth in the range of two to four percent.
P&G expects fiscal 2022 GAAP diluted net earnings per share
growth in the range of six to nine percent versus fiscal 2021 GAAP
EPS of $5.50. Core earnings per share growth for fiscal 2022 is
expected to be in the range of three to six percent versus fiscal
2021 core EPS of $5.66.
The Company said its current outlook estimates headwinds of $2.1
billion after-tax from higher commodity costs and an additional
$200 million after-tax from higher freight costs. Foreign exchange
is now expected to be approximately neutral to fiscal 2022
after-tax earnings. The approximately $2.3 billion after-tax
combined impact of commodity and freight costs represents a $0.90
per share headwind to fiscal year 2022 EPS.
The Company is not able to reconcile its forward-looking
non-GAAP cash flow and tax rate measures without unreasonable
efforts because the Company cannot predict the timing and amounts
of discrete cash items, such as acquisitions, divestitures, or
impairments, which could significantly impact GAAP results.
P&G continues to estimate a core effective tax rate in the
range of 18% to 19% in fiscal 2022.
Capital spending is estimated to be in the range of 4% to 5% of
fiscal 2022 net sales.
P&G maintained its outlook for adjusted free cash flow
productivity of 90% and expects to pay over $8 billion in dividends
and repurchase $7 billion to $9 billion of common shares in fiscal
2022.
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, 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 and
localized volatility; (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 manage disruptions in credit
markets or to our banking partners or changes to our credit rating;
(4) 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; (5) 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; (6) 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; (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 uncertainties related to changing political conditions and
potential implications such as exchange rate fluctuations and
market contraction; (13) 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,
intellectual property, labor and employment, antitrust, privacy and
data protection, tax, environmental, due diligence, risk oversight
and accounting and financial reporting) and to resolve new and
pending matters within current estimates; (14) the ability to
manage changes in applicable tax laws and regulations including
maintaining our intended tax treatment of divestiture transactions;
(15) 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; (16)
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; and (17) the ability to
successfully manage the demand, supply and operational challenges
associated with a disease outbreak, including epidemics, pandemics
or similar widespread public health concerns (including the
COVID-19 outbreak). 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/A, 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
http://www.pg.com for the latest news and information about P&G
and its brands. For other P&G news, visit us at
http://www.pg.com/news.
THE PROCTER & GAMBLE
COMPANY AND SUBSIDIARIES
(Amounts in Millions Except
Per Share Amounts)
Consolidated Earnings
Information
Three Months Ended September
30
2021
2020
% Chg
NET SALES
$
20,338
$
19,318
5%
Cost of products sold
10,365
9,142
13%
GROSS PROFIT
9,973
10,176
(2)%
Selling, general and administrative
expense
4,950
4,895
1%
OPERATING INCOME
5,023
5,281
(5)%
Interest expense
(109
)
(136
)
(20)%
Interest income
11
10
10%
Other non-operating income, net
110
142
(23)%
EARNINGS BEFORE INCOME TAXES
5,035
5,297
(5)%
Income taxes
909
989
(8)%
NET EARNINGS
4,126
4,308
(4)%
Less: Net earnings attributable to
noncontrolling interests
14
31
(55)%
NET EARNINGS ATTRIBUTABLE TO PROCTER
& GAMBLE
$
4,112
$
4,277
(4)%
EFFECTIVE TAX RATE
18.1
%
18.7
%
NET EARNINGS PER SHARE (1)
Basic
$
1.66
$
1.69
(2)%
Diluted
$
1.61
$
1.63
(1)%
DIVIDENDS PER COMMON SHARE
$
0.8698
$
0.7907
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
2,558.9
2,625.3
COMPARISONS AS A % OF NET SALES
Basis Pt Chg
Gross profit
49.0
%
52.7
%
(370)
Selling, general and administrative
expense
24.3
%
25.3
%
(100)
Operating income
24.7
%
27.3
%
(260)
Earnings before income taxes
24.8
%
27.4
%
(260)
Net earnings
20.3
%
22.3
%
(200)
Net earnings attributable to Procter &
Gamble
20.2
%
22.1
%
(190)
(1)
Basic net earnings per share and
Diluted net earnings per share are calculated on Net earnings
attributable to Procter & Gamble.
THE PROCTER & GAMBLE
COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Consolidated Earnings
Information
Three Months Ended September
30, 2021
Net Sales
% Change
Versus Year
Ago
Earnings/(Loss) Before
Income Taxes
% Change
Versus Year
Ago
Net Earnings
% Change
Versus Year
Ago
Beauty
$3,964
5%
$1,242
1%
$991
2%
Grooming
1,687
5%
518
22%
417
17%
Health Care
2,676
8%
695
2%
529
1%
Fabric & Home Care
7,009
5%
1,546
(11)%
1,191
(12)%
Baby, Feminine & Family Care
4,864
3%
1,075
(18)%
826
(18)%
Corporate
138
N/A
(41)
N/A
172
N/A
Total Company
$20,338
5%
$5,035
(5)%
$4,126
(4)%
Three Months Ended September
30, 2021
Net Sales
Drivers (1)
Volume
Organic
Volume
Foreign
Exchange
Price
Mix
Other (2)
Net Sales
Beauty
—%
—%
3%
2%
—%
—%
5%
Grooming
1%
1%
1%
2%
2%
(1)%
5%
Health Care
3%
3%
1%
1%
3%
—%
8%
Fabric & Home Care
2%
2%
1%
2%
1%
(1)%
5%
Baby, Feminine & Family Care
1%
1%
1%
(1)%
2%
—%
3%
Total Company
2%
2%
1%
1%
1%
—%
5%
(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.
THE PROCTER & GAMBLE
COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per
Share Amounts)
Consolidated Statements of
Cash Flows
Three Months Ended September
30
Amounts in
millions
2021
2020
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
$
10,288
$
16,181
OPERATING ACTIVITIES
Net earnings
4,126
4,308
Depreciation and amortization
711
671
Share-based compensation expense
116
89
Deferred income taxes
57
193
Gain on sale of assets
(73
)
(12
)
Changes in:
Accounts receivable
(1,012
)
(825
)
Inventories
(409
)
(137
)
Accounts payable, accrued and other
liabilities
1,261
442
Other operating assets and liabilities
(178
)
(30
)
Other
44
40
TOTAL OPERATING ACTIVITIES
4,643
4,739
INVESTING ACTIVITIES
Capital expenditures
(1,091
)
(850
)
Proceeds from asset sales
85
21
TOTAL INVESTING ACTIVITIES
(1,006
)
(829
)
FINANCING ACTIVITIES
Dividends to shareholders
(2,182
)
(2,030
)
Increases/(reductions) in short-term
debt
882
(3,568
)
Reductions to long-term debt
(26
)
(25
)
Treasury stock purchases
(2,750
)
(2,000
)
Impact of stock options and other
648
893
TOTAL FINANCING ACTIVITIES
(3,428
)
(6,730
)
EFFECT OF EXCHANGE RATE CHANGES ON
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(127
)
31
CHANGE IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
82
(2,789
)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD
$
10,370
$
13,392
THE PROCTER & GAMBLE
COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per
Share Amounts)
Condensed Consolidated Balance
Sheets
September 30, 2021
June 30, 2021
Cash and cash equivalents
$
10,370
$
10,288
Accounts receivable
5,662
4,725
Inventories
6,307
5,983
Prepaid expenses and other current
assets
1,997
2,095
TOTAL CURRENT ASSETS
24,336
23,091
Property, plant and equipment, net
21,392
21,686
Goodwill
40,493
40,924
Trademarks and other intangible assets,
net
23,504
23,642
Other noncurrent assets
9,944
9,964
TOTAL ASSETS
$
119,669
$
119,307
Accounts payable
$
14,223
$
13,720
Accrued and other liabilities
10,377
10,523
Debt due within one year
11,989
8,889
TOTAL CURRENT LIABILITIES
36,589
33,132
Long-term debt
20,558
23,099
Deferred income taxes
6,323
6,153
Other noncurrent liabilities
9,791
10,269
TOTAL LIABILITIES
73,261
72,653
TOTAL SHAREHOLDERS' EQUITY
46,408
46,654
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
119,669
$
119,307
The Procter & Gamble Company
Exhibit 1: Non-GAAP Measures
The following provides definitions of the non-GAAP measures used
in Procter & Gamble's October 19, 2021 earnings release and the
reconciliation to the most closely related GAAP measures.
Management believes that these non-GAAP measures provide useful
perspective on underlying business trends and provide a
supplemental measure of period-to-period financial results.
Disclosing these non-GAAP financial measures allows investors and
management to view our operating results excluding the impact of
items that are not reflective of the underlying operating
performance. Management uses these non-GAAP measures in making
operating decisions, allocating financial resources and for
business strategy purposes. Certain of these measures are also used
to evaluate senior management and are a factor in determining their
at-risk compensation. Non-GAAP financial measures should be viewed
in addition to, and not as an alternative for, the Company’s
reported results prepared in accordance with GAAP results. Our
non-GAAP financial measures do not represent a comprehensive basis
of accounting. Therefore, our non-GAAP financial measures may not
be comparable to similarly titled measures reported by other
companies. 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:
Early debt extinguishment charges:
In the three months ended December 31, 2020, the Company recorded
after tax charges of $427 million ($512 million before tax) due to
early extinguishment of certain long-term debt. These charges
represent the difference between the reacquisition price and the
par value of the debt extinguished.
We do not view the above item to be part of our sustainable
results and its exclusion from Core earnings measures provides a
more comparable measure of year-on-year results. This item is 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 achievement of management goals for
at-risk compensation.
Currency-neutral operating profit
margin: Currency-neutral operating profit margin is a
measure of the Company's operating margin excluding the incremental
current year impact of foreign exchange. Management believes this
non-GAAP measure provides a supplemental perspective to the
Company’s operating efficiency over time.
Currency-neutral gross margin:
Currency-neutral gross margin is a measure of the Company's gross
margin excluding the incremental current year impact of foreign
exchange. Management believes this non-GAAP measure provides a
supplemental perspective to the Company’s operating efficiency over
time.
Currency-neutral selling, general and
administrative (SG&A) expense as a percentage of net
sales: SG&A expense as a percentage of net sales is a
measure of the Company's selling, general and administrative
expenses excluding the incremental current year impact of foreign
exchange. Management believes this non-GAAP measure provides a
supplemental perspective to the Company's operating efficiency over
time.
Currency-neutral EPS:
Currency-neutral EPS is a measure of the Company's EPS excluding
the incremental current year impact of foreign exchange. Management
views this non-GAAP measures as a useful supplemental measure of
Company performance over time.
Adjusted free cash flow: Adjusted
free cash flow is defined as operating cash flow less capital
spending and excluding payments for the transitional tax resulting
from the U.S. Tax Act (the Company incurred a transitional tax
liability of approximately $3.8 billion in fiscal 2018 from the
U.S. Tax Act of 2017, which is payable over a period of 8 years).
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
important measure because it is one factor used in determining the
amount of cash available for dividends, share repurchases,
acquisitions and other discretionary investments.
Adjusted free cash flow
productivity: Adjusted free cash flow productivity is
defined as the ratio of adjusted free cash flow to net earnings.
Management views adjusted free cash flow productivity as a useful
measure to help investors understand P&G’s ability to generate
cash. Adjusted free cash flow productivity is used by management in
making operating decisions, allocating financial resources and for
budget planning purposes. This measure is also used in assessing
the achievement of management goals for at-risk compensation. The
Company's long-term target is to generate annual adjusted free cash
flow productivity at or above 90 percent.
THE PROCTER & GAMBLE COMPANY
AND SUBSIDIARIES
(Amounts in Millions Except Per
Share Amounts)
Reconciliation of Non-GAAP
Measures
Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
AS REPORTED
(GAAP)
AS REPORTED
(GAAP)
COST OF PRODUCTS SOLD
$
10,365
$
9,142
GROSS PROFIT
9,973
10,176
GROSS MARGIN
49.0
%
52.7
%
CURRENCY IMPACT TO GROSS MARGIN
(0.2
)%
CURRENCY-NEUTRAL GROSS MARGIN
48.8
%
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE
4,950
4,895
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE AS A % OF NET SALES
24.3
%
25.3
%
CURRENCY IMPACT TO SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
(0.1
)%
CURRENCY-NEUTRAL SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
24.2
%
OPERATING INCOME
5,023
5,281
OPERATING PROFIT MARGIN
24.7
%
27.3
%
CURRENCY IMPACT TO OPERATING
MARGIN
(0.1
)%
CURRENCY-NEUTRAL OPERATING
MARGIN
24.6
%
NET EARNINGS ATTRIBUTABLE TO
P&G
4,112
4,277
DILUTED NET EARNINGS PER COMMON SHARE
(1)
$
1.61
$
1.63
CURRENCY IMPACT TO EARNINGS
$
(0.03
)
CURRENCY-NEUTRAL EPS
$
1.58
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
2,558.9
2,625.3
COMMON SHARES OUTSTANDING - SEPTEMBER
30, 2021
2,419.9
(1) Diluted net earnings per share are
calculated on Net earnings attributable to Procter &
Gamble.
CHANGE VERSUS YEAR AGO (1)
GROSS MARGIN
(370)
BPS
SELLING GENERAL & ADMINISTRATIVE
EXPENSE AS A % OF NET SALES
(100)
BPS
OPERATING PROFIT MARGIN
(260)
BPS
EPS
(1)
%
CURRENCY-NEUTRAL EPS
(3)
%
Organic sales growth:
July - September
2021
Net
Sales Growth
Foreign
Exchange
Impact
Acquisition &
Divestiture
Impact/Other (1)
Organic
Sales
Growth
Beauty
5%
(3)%
—%
2%
Grooming
5%
(1)%
—%
4%
Health Care
8%
(1)%
—%
7%
Fabric & Home Care
5%
(1)%
1%
5%
Baby, Feminine & Family Care
3%
(1)%
—%
2%
Total P&G
5%
(1)%
—%
4%
(1)
Acquisitions/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
P&G
Net
Sales Growth
Combined
Foreign Exchange &
Acquisition/Divestiture Impact/Other (1)
Organic
Sales Growth
FY 2022
(Estimate)
+2% to +4%
-
+2% to +4%
(1)
Acquisitions/Divestiture
Impact/Other includes the volume and mix impact of acquisitions and
divestitures and rounding impacts necessary to reconcile net sales
to organic sales.
Core EPS growth:
Total
P&G
Diluted
EPS
Growth
Impact
of Incremental Non-Core Items (1)
Core EPS
Growth
FY 2022
(Estimate)
+6% to +9%
(3)%
+3% to +6%
(1)
Includes net impact of prior year
early debt extinguishment charges.
Adjusted free cash flow (dollar amounts in
millions):
Three Months Ended September
30, 2021
Operating Cash Flow
Capital
Spending
U.S. Tax
Act Payments
Adjusted
Free Cash Flow
$4,643
$(1,091)
$225
$3,777
Adjusted free cash flow productivity
(dollar amounts in millions):
Three Months Ended September
30, 2021
Adjusted
Free Cash Flow
Net
Earnings
Adjusted
Free Cash Flow Productivity
$3,777
$4,126
92%
Category: PG-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211019005630/en/
P&G Media Contacts:
Erica Noble, 513.271.1793 Jennifer Corso, 513.983.2570
P&G Investor Relations
Contact: John Chevalier, 513.983.9974
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