Net Sales +6%; Organic
Sales +7%
Diluted EPS and Core EPS
$1.83, each +17%
UPDATES ALL-IN SALES
GROWTH OUTLOOK
MAINTAINS FISCAL YEAR
2024 ORGANIC SALES AND EPS GROWTH GUIDANCE RANGES
The Procter & Gamble Company (NYSE:PG) reported first
quarter fiscal year 2024 net sales of $21.9 billion, an increase of
six percent versus the prior year. Organic sales, which excludes
the impacts of foreign exchange and acquisitions and divestitures,
increased seven percent. Diluted net earnings per share were $1.83,
an increase of 17% versus prior year.
Operating cash flow was $4.9 billion, and net earnings were $4.6
billion for the quarter. Adjusted free cash flow productivity was
97%, which is calculated as operating cash flow excluding capital
spending and certain other items, as a percentage of net earnings.
The Company returned $3.8 billion of cash to shareowners via
approximately $2.3 billion of dividend payments and $1.5 billion of
common stock repurchases.
First Quarter ($ billions,
except EPS)
GAAP
2024
2023
% Change
Non-GAAP*
2024
2023
% Change
Net Sales
21.9
20.6
6%
Organic Sales
n/a
n/a
7%
Diluted EPS
1.83
1.57
17%
Core EPS
1.83
1.57
17%
*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 results in the first quarter of fiscal
year 2024, putting us on track to deliver towards the higher end of
our fiscal year guidance ranges for organic sales and core EPS
growth,” said Jon Moeller, Chairman of the Board, President and
Chief Executive Officer. “We remain committed to our integrated
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. The P&G team’s
execution of this strategy has enabled us to build and sustain
strong momentum. 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 2024 were $21.9
billion, a six percent increase versus the prior year. Unfavorable
foreign exchange had a one percent impact on net sales. Organic
sales, which exclude the impacts of foreign exchange and
acquisitions and divestitures, increased seven percent. The organic
sales increase was driven by a seven percent increase from higher
pricing and one percent increase due to favorable product mix,
partially offset by a one percent decrease in shipment volumes.
July - September
2023
Volume
Foreign
Exchange
Price
Mix
Other (2)
Net
Sales
Organic
Volume
Organic
Sales
Net Sales
Drivers (1)
Beauty
—%
(3)%
7%
(2)%
1%
3%
—%
5%
Grooming
(2)%
(3)%
9%
1%
1%
6%
(2)%
9%
Health Care
2%
1%
6%
2%
—%
11%
2%
10%
Fabric & Home Care
(1)%
(1)%
8%
1%
1%
8%
—%
9%
Baby, Feminine & Family Care
(3)%
(2)%
8%
2%
—%
5%
(3)%
7%
Total P&G
(1)%
(1)%
7%
1%
—%
6%
(1)%
7%
(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 five percent versus year
ago. Skin and Personal Care organic sales grew low single digits as
higher pricing and innovation-based volume growth were partially
offset by unfavorable mix due to lower sales of SK-II. Hair Care
organic sales increased high single digits driven primarily by
increased pricing.
- Grooming segment organic sales increased nine percent versus
year ago as higher pricing and favorable product mix were partially
offset by pricing-related volume declines. All regions grew organic
sales.
- Health Care segment organic sales increased ten percent versus
year ago. Oral Care organic sales increased high single digits due
to increased pricing and favorable product mix. Personal Health
Care organic sales increased double digits due to increased pricing
and volume growth due to innovation and strong demand for
respiratory products.
- Fabric and Home Care segment organic sales increased nine
percent versus year ago. Fabric Care organic sales increased high
single digits due to increased pricing and favorable product mix,
partially offset by volume declines primarily in Asia. Home Care
organic sales increased low teens due to increased pricing and
favorable premium products mix.
- Baby, Feminine and Family Care segment organic sales increased
seven percent versus year ago. Baby Care organic sales increased
mid-single digits due to increased pricing and favorable product
mix, partially offset by pricing-related volume declines. Organic
sales grew in all regions. Feminine Care organic sales increased
high single digits driven by increased pricing and favorable
geographic and product mix, partially offset by pricing-related
volume declines. All regions grew organic sales. Family Care
organic sales increased mid-single digits due to increased pricing,
partially offset by unfavorable pack size mix.
Diluted net earnings per share increased by 17% to $1.83, driven
by an increase in net sales and an increase in operating margin.
Currency-neutral EPS were up 21% versus the prior year EPS.
Gross margin for the quarter increased 460 basis points versus
year ago, 520 basis points on a currency-neutral basis. The
increase was driven by benefits of 330 basis points from increased
pricing, 160 basis points of favorable commodity costs and 150
basis points from gross productivity savings. These were partially
offset by 60 basis points of negative product mix and 60 basis
points of product reinvestments and other impacts.
Selling, general and administrative expense (SG&A) as a
percentage of sales increased 220 basis points versus year ago and
180 basis points on a currency-neutral basis. The increase was
driven by 260 basis points of marketing investments, 140 basis
points of wage inflation and other impacts, partially offset by 160
basis points of net sales growth leverage and 60 basis points of
productivity savings.
Operating margin for the quarter increased 240 basis points
versus the prior year, 340 basis points on a currency-neutral
basis. Operating margin included gross productivity savings of 210
basis points.
Fiscal Year 2024 Guidance
P&G adjusted its guidance range for fiscal 2024 all-in sales
growth to be in the range of two to four percent versus the prior
year. Foreign exchange is now expected to be a headwind of
approximately one to two percentage points to all-in sales growth.
The Company maintained its outlook for organic sales growth in the
range of four to five percent.
P&G maintained its fiscal 2024 diluted net earnings per
share growth in the range of six to nine percent versus fiscal 2023
EPS of $5.90. This outlook equates to a range of $6.25 to $6.43 per
share. The Company highlighted that it is maintaining the EPS range
despite an incremental $600 million dollars after tax of foreign
exchange headwinds since its initial fiscal 2024 guidance in late
July.
The Company said it expects tailwinds of approximately $800
million after tax due to favorable commodity costs for fiscal year
2024. However, unfavorable foreign exchange rates are now expected
to be a headwind of approximately $1 billion after tax. The Company
continues to expect the net impact of interest expense and interest
income to be a headwind of approximately $200 million after
tax.
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 now expects an effective tax rate of approximately 21%
in fiscal 2024.
Capital spending is now estimated to be approximately 4.5% of
fiscal 2024 net sales.
P&G continues to expect adjusted free cash flow productivity
of 90% and expects to pay more than $9 billion in dividends and to
repurchase $5 to $6 billion of common shares in fiscal 2024.
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 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
(including the Russia-Ukraine 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 and geopolitical 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, the environment, due diligence, risk oversight,
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; (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; (17) 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; (18) the ability to manage the
uncertainties, sanctions and economic effects from the war between
Russia and Ukraine; and (19) 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
2023
2022
% Chg
NET SALES
$
21,871
$
20,612
6%
Cost of products sold
10,501
10,846
(3)%
GROSS PROFIT
11,371
9,766
16%
Selling, general and administrative
expense
5,604
4,827
16%
OPERATING INCOME
5,767
4,939
17%
Interest expense
(225
)
(123
)
83%
Interest income
128
42
205%
Other non-operating income, net
132
139
(5)%
EARNINGS BEFORE INCOME TAXES
5,802
4,997
16%
Income taxes
1,246
1,034
21%
NET EARNINGS
4,556
3,963
15%
Less: Net earnings attributable to
noncontrolling interests
35
24
46%
NET EARNINGS ATTRIBUTABLE TO PROCTER
& GAMBLE
$
4,521
$
3,939
15%
EFFECTIVE TAX RATE
21.5
%
20.7
%
NET EARNINGS PER SHARE (1)
Basic
$
1.89
$
1.62
17%
Diluted
$
1.83
$
1.57
17%
DIVIDENDS PER COMMON SHARE
$
0.9407
$
0.9133
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
2,475.2
2,503.6
COMPARISONS AS A % OF NET SALES
Basis Pt Chg
Gross profit
52.0
%
47.4
%
460
Selling, general and administrative
expense
25.6
%
23.4
%
220
Operating income
26.4
%
24.0
%
240
Earnings before income taxes
26.5
%
24.2
%
230
Net earnings
20.8
%
19.2
%
160
Net earnings attributable to Procter &
Gamble
20.7
%
19.1
%
160
(1)
Basic net earnings per share and
Diluted net earnings per 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, 2023
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
$4,097
3%
$1,249
(2)%
$971
(4)%
Grooming
1,724
6%
533
6%
421
4%
Health Care
3,074
11%
889
11%
689
12%
Fabric & Home Care
7,646
8%
2,031
32%
1,569
34%
Baby, Feminine & Family Care
5,186
5%
1,408
33%
1,075
34%
Corporate
144
N/A
(308)
N/A
(168)
N/A
Total Company
$21,871
6%
$5,802
16%
$4,556
15%
Three Months Ended September
30, 2023
Net Sales
Drivers (1)
Volume
Organic
Volume
Foreign
Exchange
Price
Mix
Other (2)
Net Sales
Beauty
—%
—%
(3)%
7%
(2)%
1%
3%
Grooming
(2)%
(2)%
(3)%
9%
1%
1%
6%
Health Care
2%
2%
1%
6%
2%
—%
11%
Fabric & Home Care
(1)%
—%
(1)%
8%
1%
1%
8%
Baby, Feminine & Family Care
(3)%
(3)%
(2)%
8%
2%
—%
5%
Total Company
(1)%
(1)%
(1)%
7%
1%
—%
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.
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
2023
2022
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
$
8,246
$
7,214
OPERATING ACTIVITIES
Net earnings
4,556
3,963
Depreciation and amortization
702
663
Share-based compensation expense
125
105
Deferred income taxes
102
(130
)
Gain on sale of assets
(3
)
(1
)
Changes in:
Accounts receivable
(830
)
(740
)
Inventories
(142
)
(893
)
Accounts payable and accrued and other
liabilities
857
1,495
Other operating assets and liabilities
(671
)
(454
)
Other
208
62
TOTAL OPERATING ACTIVITIES
4,904
4,070
INVESTING ACTIVITIES
Capital expenditures
(925
)
(890
)
Proceeds from asset sales
3
5
Acquisitions, net of cash acquired
—
(2
)
Other investing activity
(300
)
55
TOTAL INVESTING ACTIVITIES
(1,222
)
(832
)
FINANCING ACTIVITIES
Dividends to shareholders
(2,290
)
(2,255
)
Additions to short-term debt with original
maturities of more than three months
2,179
2,975
Reductions in short-term debt with
original maturities of more than three months
(1,906
)
(265
)
Net additions to other short-term debt
2,172
1,727
Reductions in long-term debt
(1,004
)
(1,877
)
Treasury stock purchases
(1,500
)
(4,000
)
Impact of stock options and other
312
188
TOTAL FINANCING ACTIVITIES
(2,038
)
(3,507
)
EFFECT OF EXCHANGE RATE CHANGES ON
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(156
)
(235
)
CHANGE IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
1,487
(504
)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD
$
9,733
$
6,710
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, 2023
June 30, 2023
Cash and cash equivalents
$
9,733
$
8,246
Accounts receivable
6,215
5,471
Inventories
7,117
7,073
Prepaid expenses and other current
assets
1,875
1,858
TOTAL CURRENT ASSETS
24,940
22,648
Property, plant and equipment, net
21,636
21,909
Goodwill
40,239
40,659
Trademarks and other intangible assets,
net
23,637
23,783
Other noncurrent assets
12,079
11,830
TOTAL ASSETS
$
122,531
$
120,829
Accounts payable
$
14,435
$
14,598
Accrued and other liabilities
10,912
10,929
Debt due within one year
11,811
10,229
TOTAL CURRENT LIABILITIES
37,158
35,756
Long-term debt
24,069
24,378
Deferred income taxes
6,814
6,478
Other noncurrent liabilities
6,477
7,152
TOTAL LIABILITIES
74,517
73,764
TOTAL SHAREHOLDERS' EQUITY
48,014
47,065
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
122,531
$
120,829
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, 2023 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. 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.
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 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: Currency-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.
Currency-neutral operating margin:
Currency-neutral operating 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.
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. For the period covered by
this release, there are no reconciling items for Core EPS.
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 and excluding payments for the transitional tax resulting
from the U.S. Tax Act. 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 PROCTER & GAMBLE
COMPANY AND SUBSIDIARIES
Reconciliation of Non-GAAP
Measures
Amounts in
millions except per share amounts
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
COST OF PRODUCTS SOLD
$
10,501
$
10,846
GROSS PROFIT
11,371
9,766
GROSS MARGIN
52.0
%
47.4
%
CURRENCY IMPACT TO GROSS MARGIN
0.6
%
CURRENCY-NEUTRAL GROSS MARGIN
52.6
%
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE
5,604
4,827
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE AS A % OF NET SALES
25.6
%
23.4
%
CURRENCY IMPACT TO SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
(0.4
)%
CURRENCY-NEUTRAL SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
25.2
%
OPERATING INCOME
5,767
4,939
OPERATING MARGIN
26.4
%
24.0
%
CURRENCY IMPACT TO OPERATING
MARGIN
1.0
%
CURRENCY-NEUTRAL OPERATING
MARGIN
27.4
%
NET EARNINGS ATTRIBUTABLE TO
P&G
4,521
3,939
DILUTED NET EARNINGS PER COMMON SHARE
(1)
$
1.83
$
1.57
CURRENCY IMPACT TO EARNINGS
$
0.07
CURRENCY-NEUTRAL CORE EPS
$
1.90
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
2,475.2
2,503.6
COMMON SHARES OUTSTANDING - September
30, 2023
2,356.9
(1)
Diluted net earnings per share
are calculated on Net earnings attributable to Procter &
Gamble.
CHANGE IN CURRENT YEAR REPORTED (GAAP)
AND NON-GAAP MEASURES VERSUS PRIOR YEAR REPORTED (GAAP)
MEASURES
GROSS MARGIN
460
BPS
CURRENCY-NEUTRAL GROSS MARGIN
520
BPS
SELLING GENERAL & ADMINISTRATIVE
EXPENSE AS A % OF NET SALES
220
BPS
CURRENCY-NEUTRAL SELLING GENERAL &
ADMINISTRATIVE EXPENSE AS A % OF NET SALES
180
BPS
OPERATING MARGIN
240
BPS
CURRENCY-NEUTRAL OPERATING MARGIN
340
BPS
CORE EPS
17
%
CURRENCY-NEUTRAL CORE EPS
21
%
Certain columns and rows may not add due to rounding.
Organic sales growth:
July - September
2023
Net
Sales Growth
Foreign
Exchange
Impact
Acquisition &
Divestiture
Impact/Other (1)
Organic
Sales
Growth
Beauty
3%
3%
(1)%
5%
Grooming
6%
3%
—%
9%
Health Care
11%
(1)%
—%
10%
Fabric & Home Care
8%
1%
—%
9%
Baby, Feminine & Family Care
5%
2%
—%
7%
Total P&G
6%
1%
—%
7%
(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 2024
(Estimate)
+2% to +4%
+1% to +2%
+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.
Adjusted free cash flow (dollar amounts in
millions):
Three Months Ended September
30, 2023
Operating Cash Flow
Capital
Spending
U.S. Tax
Act Payments
Adjusted
Free Cash Flow
$4,904
$(925)
$422
$4,401
Adjusted free cash flow productivity
(dollar amounts in millions):
Three Months Ended September
30, 2023
Adjusted
Free Cash Flow
Net
Earnings
Adjusted
Free Cash Flow Productivity
$4,401
$4,556
97%
Category: PG-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231017412338/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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