Net Sales +6%; Organic
Sales +6%;
Diluted EPS +13%; Core
EPS +1%
RAISES FISCAL YEAR 2022
SALES AND CASH GUIDANCE, CONFIRMS EPS OUTLOOK
The Procter & Gamble Company (NYSE:PG) reported second
quarter fiscal year 2022 net sales of $21.0 billion, an increase of
six percent versus the prior year. Excluding the impacts of foreign
exchange, acquisitions and divestitures, organic sales also
increased six percent. Diluted net earnings per share were $1.66,
an increase of 13% versus prior year GAAP EPS and an increase of
one percent versus prior year Core EPS.
Operating cash flow was $5.1 billion for the quarter. Adjusted
free cash flow productivity was 106%. The Company returned nearly
$7 billion of cash to shareholders via $2 billion of dividend
payments and nearly $5 billion of common stock repurchases.
$ billions, except EPS
Second Quarter
GAAP
2022
2021
% Change
Non-GAAP*
2022
2021
% Change
Net Sales
21.0
19.7
6%
Organic Sales
n/a
n/a
6%
Diluted EPS
1.66
1.47
13%
Core EPS
1.66
1.64
1%
*Please refer to Exhibit 1 -
Non-GAAP Measures for the definition and reconciliation of these
measures to the related GAAP measures.
“We delivered very strong top-line growth and made sequential
progress on earnings in the face of significant cost headwinds,”
said Jon Moeller, President and Chief Executive Officer. “These
results keep us on track to deliver our earnings outlook and to
raise estimates for sales growth, cash productivity and cash return
to shareowners. Our focus remains on the strategies of superiority,
productivity, constructive disruption and continually improving
P&G’s organization structure and culture. These strategies have
enabled us to build and sustain strong momentum. They remain the
right strategies to deliver balanced growth and value
creation.”
October - December Quarter Discussion
Net sales in the second quarter of fiscal year 2022 were $21.0
billion, a six percent increase versus the prior year. Organic
sales, which exclude the impacts of foreign exchange, acquisitions
and divestitures also increased six percent. The increase in
organic sales was driven by a three percent increase in shipment
volumes and three percentage points of increased pricing to help
offset the significant commodity and other input cost increases.
Mix was neutral to net sales growth.
October -
December 2021
Volume
Foreign
Exchange
Price
Mix
Other (2)
Net
Sales
Organic
Volume
Organic
Sales
Net Sales
Drivers (1)
Beauty
1%
1%
2%
(1)%
—%
3%
1%
2%
Grooming
1%
(1)%
4%
1%
(1)%
4%
1%
5%
Health Care
4%
—%
1%
3%
—%
8%
4%
8%
Fabric & Home Care
7%
(1)%
2%
(1)%
—%
7%
7%
8%
Baby, Feminine & Family Care
1%
—%
3%
1%
—%
5%
1%
5%
Total P&G
3%
—%
3%
—%
—%
6%
3%
6%
(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. Skin and Personal Care organic sales increased low single
digits primarily driven by volume growth in Personal Care due to
innovation, market growth and pricing, partially offset by negative
product mix. Hair Care organic sales increased low single digits
primarily driven by increased pricing.
- Grooming segment organic sales increased five percent versus
year ago. Shave Care organic sales increased mid-single digits
primarily due to volume growth, increased pricing and positive
product and geographic mix from growth in developed markets.
Appliances organic sales increased mid-single digits due to
increased pricing and positive mix driven by the growth of premium
shavers and stylers. This was partially offset by lower volumes
versus a high base period which benefited from a pandemic-related
consumption surge of in-home shavers and stylers.
- Health Care segment organic sales increased eight percent
versus year ago. Oral Care organic sales increased low single
digits driven by positive mix from a higher proportion of premium
paste and whitening products and innovation-based price increases.
Personal Health Care organic sales increased about 20% due
primarily to growth in respiratory products due to a more intense
cough/cold/flu season versus the prior year. Each region delivered
double digit organic sales growth for the quarter in Personal
Health Care.
- Fabric and Home Care segment organic sales increased eight
percent versus year ago. Fabric Care organic sales increased double
digits led by strong growth of unit dose detergents and fabric
enhancers. Home Care organic sales increased low single digits due
to increased pricing and increased volume from innovation versus a
high base period which also benefited from strong pandemic-related
consumption of home cleaning products.
- Baby, Feminine and Family Care segment organic sales increased
five percent versus year ago. Baby Care organic sales increased
high single digits driven by increased pricing, market growth and
positive product mix from the growth of premium taped and
pant-style diapers. Feminine Care organic sales increased double
digits driven by commodity-based price increases, innovation and
positive geographic and product mix. Family Care organic sales were
in-line with prior year as pricing benefits were offset by
unfavorable mix and lower volumes versus pandemic-related
consumption increases in the base period.
Diluted net earnings per share were $1.66 for the quarter, a 13%
increase versus the prior year GAAP EPS which included a charge for
the early extinguishment of debt. Diluted net EPS increased one
percent versus the prior year Core EPS, driven by an increase in
net sales and a reduction in shares outstanding, partially offset
by a reduction in operating margin caused by higher commodity and
freight costs as anticipated. Currency-neutral net EPS were up two
percent versus the prior year Core EPS.
Gross margin for the quarter decreased 400 basis points versus
year ago, 410 basis points on a currency-neutral basis. Reductions
in gross margin were driven by 400 basis points of higher commodity
costs, 140 basis points driven by negative product mix, 60 basis
points from increased freight costs, and 20 basis points of
product/package reinvestments. These were partially offset by 130
basis points of benefit from increased pricing and 80 basis points
of gross productivity savings.
Selling, general and administrative expense (SG&A) as a
percentage of sales decreased 150 basis points versus the prior
year, 170 basis points on a currency-neutral basis. The decrease
was driven by 150 basis points of cost leverage benefit from
increased sales and 70 basis points of gross productivity savings
from overhead and marketing expenses, partially offset by 50 basis
points of marketing spending and overhead investments net of other
impacts.
Operating margin for the quarter decreased 250 basis points
versus the prior year, 240 basis points on a currency-neutral
basis. Operating margin included gross productivity cost savings of
150 basis points.
Fiscal Year 2022 Guidance
P&G raised its outlook for fiscal 2022 all-in sales growth
from a range of two to four percent to a range of three to four
percent versus the prior fiscal year. The Company also raised its
guidance for organic sales growth from a range of two to four
percent to a range of four to five percent. Foreign exchange is now
expected to be a one percentage point headwind to all-in sales
growth for the fiscal year.
P&G confirmed its outlook for 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. The Company continues to
expect core earnings per share growth for fiscal 2022 in the range
of three to six percent versus fiscal 2021 Core EPS of $5.66.
The Company said its current fiscal 2022 outlook includes
headwinds of $2.3 billion after-tax from higher commodity costs,
$300 million after-tax from higher freight costs and $200 million
after-tax from negative foreign exchange impacts. Combined, these
items are a $2.8 billion after-tax headwind, or approximately $1.10
per share, to fiscal 2022 earnings versus fiscal 2021.
The Company is not able to reconcile its forward-looking
non-GAAP cash flow measure 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 four percent
to five percent of fiscal 2022 net sales.
P&G increased its outlook for adjusted free cash flow
productivity to 95% and now expects to pay over $8 billion in
dividends and repurchase $9 billion to $10 billion of common shares
in fiscal 2022. Combined, P&G now plans to return $17 billion
to $18 billion of cash to shareowners in the fiscal year.
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 affect 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,
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 December
31
2021
2020
% Chg
NET SALES
$
20,953
$
19,745
6%
Cost of products sold
10,664
9,253
15%
GROSS PROFIT
10,289
10,492
(2)%
Selling, general and administrative
expense
5,121
5,112
—%
OPERATING INCOME
5,168
5,380
(4)%
Interest expense
(106
)
(143
)
(26)%
Interest income
10
9
11%
Other non-operating income/(expense),
net
167
(369
)
(145)%
EARNINGS BEFORE INCOME TAXES
5,239
4,877
7%
Income taxes
997
990
1%
NET EARNINGS
4,242
3,887
9%
Less: Net earnings attributable to
noncontrolling interests
19
33
(42)%
NET EARNINGS ATTRIBUTABLE TO PROCTER
& GAMBLE
$
4,223
$
3,854
10%
EFFECTIVE TAX RATE
19.0
%
20.3
%
NET EARNINGS PER SHARE (1)
Basic
$
1.72
$
1.53
12%
Diluted
$
1.66
$
1.47
13%
DIVIDENDS PER COMMON SHARE
$
0.8698
$
0.7907
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
2,544.2
2,615.4
COMPARISONS AS A % OF NET SALES
Basis Pt Chg
Gross profit
49.1
%
53.1
%
(400)
Selling, general and administrative
expense
24.4
%
25.9
%
(150)
Operating income
24.7
%
27.2
%
(250)
Earnings before income taxes
25.0
%
24.7
%
30
Net earnings
20.2
%
19.7
%
50
Net earnings attributable to Procter &
Gamble
20.2
%
19.5
%
70
(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 December
31, 2021
Net Sales
% Change
Versus Year
Ago
Earnings/(Loss) Before
Income Taxes
% Change
Versus Year
Ago
Net Earnings
% Change
Versus Year
Ago
Beauty
$3,926
3%
$1,179
(1)%
$947
(1)%
Grooming
1,811
4%
576
7%
476
5%
Health Care
2,976
8%
905
9%
701
7%
Fabric & Home Care
6,972
7%
1,463
(9)%
1,137
(9)%
Baby, Feminine & Family Care
5,116
5%
1,187
(12)%
914
(12)%
Corporate
152
N/A
(71)
N/A
67
N/A
Total Company
$20,953
6%
$5,239
7%
$4,242
9%
Three Months Ended December
31, 2021
Net Sales Drivers (1)
Volume
Organic
Volume
Foreign
Exchange
Price
Mix
Other (2)
Net Sales
Beauty
1%
1%
1%
2%
(1)%
—%
3%
Grooming
1%
1%
(1)%
4%
1%
(1)%
4%
Health Care
4%
4%
—%
1%
3%
—%
8%
Fabric & Home Care
7%
7%
(1)%
2%
(1)%
—%
7%
Baby, Feminine & Family Care
1%
1%
—%
3%
1%
—%
5%
Total Company
3%
3%
—%
3%
—%
—%
6%
(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
Six Months Ended December
31
Amounts in
millions
2021
2020
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
$
10,288
$
16,181
OPERATING ACTIVITIES
Net earnings
8,368
8,195
Depreciation and amortization
1,395
1,342
Loss on early extinguishment of debt
—
512
Share-based compensation expense
268
254
Deferred income taxes
(101
)
145
Gain on sale of assets
(82
)
(14
)
Changes in:
Accounts receivable
(644
)
(462
)
Inventories
(840
)
(217
)
Accounts payable, accrued and other
liabilities
1,431
312
Other operating assets and liabilities
(84
)
(14
)
Other
53
110
TOTAL OPERATING ACTIVITIES
9,764
10,163
INVESTING ACTIVITIES
Capital expenditures
(1,717
)
(1,417
)
Proceeds from asset sales
97
39
Acquisitions, net of cash acquired
(349
)
—
Change in other investments
3
—
TOTAL INVESTING ACTIVITIES
(1,966
)
(1,378
)
FINANCING ACTIVITIES
Dividends to shareholders
(4,353
)
(4,055
)
Increases in short-term debt with original
maturities of more than three months
6,747
5,267
Reductions in short-term debt with
original maturities of more than three months
(1,730
)
(2,602
)
Increases/(reductions) in other short-term
debt
(1,124
)
(6,083
)
Additions to long-term debt
2,136
2,429
Reductions to long-term debt (1)
(1,673
)
(4,220
)
Treasury stock purchases
(7,504
)
(5,008
)
Impact of stock options and other
1,215
1,101
TOTAL FINANCING ACTIVITIES
(6,286
)
(13,171
)
EFFECT OF EXCHANGE RATE CHANGES ON
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(256
)
146
CHANGE IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
1,256
(4,240
)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD
$
11,544
$
11,941
(1)
Includes early extinguishment of
debt costs of $512 during the six months ended December 31,
2020.
THE PROCTER & GAMBLE
COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per
Share Amounts)
Condensed Consolidated Balance
Sheets
December 31, 2021
June 30, 2021
Cash and cash equivalents
$
11,544
$
10,288
Accounts receivable
5,241
4,725
Inventories
6,673
5,983
Prepaid expenses and other current
assets
2,087
2,095
TOTAL CURRENT ASSETS
25,545
23,091
Property, plant and equipment, net
21,357
21,686
Goodwill
40,315
40,924
Trademarks and other intangible assets,
net
23,538
23,642
Other noncurrent assets
10,661
9,964
TOTAL ASSETS
$
121,416
$
119,307
Accounts payable
$
14,154
$
13,720
Accrued and other liabilities
10,542
10,523
Debt due within one year
13,331
8,889
TOTAL CURRENT LIABILITIES
38,027
33,132
Long-term debt
22,322
23,099
Deferred income taxes
6,506
6,153
Other noncurrent liabilities
9,668
10,269
TOTAL LIABILITIES
76,523
72,653
TOTAL SHAREHOLDERS' EQUITY
44,893
46,654
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
121,416
$
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 January 19, 2022 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. 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: Current-neutral 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.
Core EPS: Core earnings per share,
or Core EPS, is a measure of the Company's diluted net earnings per
share adjusted as indicated. Management views this non-GAAP measure
as a useful supplemental measure of Company performance over time.
This measure is also used when evaluating senior management in
determining their at-risk compensation.
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 measure 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. 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%.
THE PROCTER & GAMBLE COMPANY
AND SUBSIDIARIES
(Amounts in Millions Except Per
Share Amounts)
Reconciliation of Non-GAAP
Measures
Three Months Ended December
31, 2021
Three Months Ended December
31, 2020
AS REPORTED
(GAAP)
AS REPORTED
(GAAP)
EARLY DEBT
EXTINGUISHMENT
ROUNDING
NON-GAAP
(CORE)
COST OF PRODUCTS SOLD
$
10,664
$
9,253
$
—
$
—
$
9,253
GROSS PROFIT
10,289
10,492
—
—
10,492
GROSS MARGIN
49.1
%
53.1
%
—
%
—
%
53.1
%
CURRENCY IMPACT TO GROSS MARGIN
(0.1
) %
CURRENCY-NEUTRAL GROSS MARGIN
49.0
%
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE
5,121
5,112
—
—
5,112
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE AS A % OF NET SALES
24.4
%
25.9
%
—
%
—
%
25.9
%
CURRENCY IMPACT TO SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
(0.2
) %
CURRENCY-NEUTRAL SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
24.2
%
OPERATING INCOME
5,168
5,380
—
—
5,380
OPERATING PROFIT MARGIN
24.7
%
27.2
%
—
%
—
%
27.2
%
CURRENCY IMPACT TO OPERATING
MARGIN
0.1
%
CURRENCY-NEUTRAL OPERATING
MARGIN
24.8
%
NET EARNINGS ATTRIBUTABLE TO
P&G
4,223
3,854
427
—
4,281
DILUTED NET EARNINGS PER COMMON SHARE
(1)
$
1.66
$
1.47
$
0.16
$
0.01
$
1.64
CURRENCY IMPACT TO EARNINGS
$
0.02
CURRENCY-NEUTRAL CORE EPS
$
1.68
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
2,544.2
2,615.4
COMMON SHARES OUTSTANDING - DECEMBER
31, 2021
2,397.1
(1)
Diluted net earnings per share
are calculated on Net earnings attributable to Procter &
Gamble.
CHANGE IN CURRENT YEAR REPORTED (GAAP)
MEASURES VERSUS PRIOR YEAR NON-GAAP (CORE) MEASURES (1)
GROSS MARGIN
(400
)
BPS
CURRENCY-NEUTRAL GROSS MARGIN
(410
)
BPS
SELLING GENERAL & ADMINISTRATIVE
EXPENSE AS A % OF NET SALES
(150
)
BPS
CURRENCY-NEUTRAL SELLING GENERAL &
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
(170
)
BPS
OPERATING PROFIT MARGIN
(250
)
BPS
CURRENCY-NEUTRAL OPERATING PROFIT
MARGIN
(240
)
BPS
EPS
1
%
CURRENCY-NEUTRAL EPS
2
%
(1)
Change versus year ago is
calculated based on As Reported (GAAP) values for the three months
ended December 31, 2021 versus the Non-GAAP values for the three
months ended December 31, 2020.
Organic sales growth:
October -
December 2021
Net
Sales Growth
Foreign
Exchange
Impact
Acquisition &
Divestiture
Impact/Other (1)
Organic
Sales
Growth
Beauty
3%
(1)%
—%
2%
Grooming
4%
1%
—%
5%
Health Care
8%
—%
—%
8%
Fabric & Home Care
7%
1%
—%
8%
Baby, Feminine & Family Care
5%
—%
—%
5%
Total P&G
6%
—%
—%
6%
(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)
+3% to +4%
+1%
+4% to +5%
(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 December
31, 2021
Operating Cash Flow
Capital
Spending
Adjusted
Free Cash Flow
$5,121
$(626)
$4,495
Adjusted free cash flow productivity
(dollar amounts in millions):
Three Months Ended December
31, 2021
Adjusted
Free Cash Flow
Net
Earnings
Adjusted
Free Cash Flow Productivity
$4,495
$4,242
106%
Category: PG-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220118006236/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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