Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2017 Earnings Presentation
23 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 20, 2017
Slide 1: Procter and Gamble Earnings Release: Q2 FY 2017 Results
Procter and Gamble Earnings Release:Q2 FY 2017 ResultsJanuary 20, 2017
Slide 2: Business Results Q2 FY 2017
Business ResultsQ2 FY 2017
Slide 3: Organic Sales Growth
Oct – Dec 16 (Q2 FY 17) ResultsOrganic Sales Growth Sales growth was volume driven, with organic volume growing +2%.
Slide 4: Core EPS Growth
Oct – Dec 16 (Q2 FY 17) ResultsCore EPS Growth Q2 Core operating margin was unchanged versus prior year due to improvement in core gross margin driven by productivity-driven cost savings offset by marketing investments and currency headwinds.
Slide 5: Currency-Neutral Core EPS Growth
Oct – Dec 16 (Q2 FY 17) ResultsCurrency-Neutral Core EPS Growth
Slide 6: Business Segment Results and Highlights Q2 FY 2017
Business Segment Results and HighlightsQ2 FY 2017
Slide 7: Beauty Segment
-1% Pricing, +2% MixOrganic Sales: i Low single digits in Developed markets, h High single digits in Developing marketsGlobal value share declined 0.8 points versus year agoNet Earnings: Productivity improvements and volume growth were more than offset by marketing investments and commodity/currency
Slide 8: Beauty Highlights
Hair Care organic sales grew low single digits versus year ago. Developing markets were up mid-single digits driven by growth in GC and LA partially offset by competitive activity. Developed markets were flat with strong growth in Pantene and Head and Shoulders offset by competitive promotion activi
Slide 9: Grooming Segment
+1% Pricing, -4% Mix Organic Sales: i Mid-single digits in Developed markets, h Double digits in Developing marketsGlobal value share declined 0.9 points versus year agoNet Earnings: Volume growth from innovation, productivity savings, and pricing were partially offset by marketing investments and m
Slide 10: Grooming Highlights
Grooming organic sales were driven by pricing, innovation-driven volume growth from Mach3 upgrade and Fusion ProShield and premium innovation led growth in Appliances. Developing market sales grew double digits driven by premium innovation and price increases. Developed market sales declined mid-sin
Slide 11: Health Care Segment
+1% Pricing, +2% MixOrganic Sales: h Mid-single digits in Developed markets, h High single digits in Developing marketsGlobal value share declined 0.2 points versus year agoNet Earnings: Strong volume growth, mix help, productivity improvements, and pricing were partially offset by currency headwind
Slide 12: Health Care Highlights
Oral Care organic sales were up high single digits versus year ago. Developed market sales increased high single digits driven by strong volume growth in Paste and Power as well as favorable form mix. Developing markets increased double digits driven by strong volume growth and mix help across Power
Slide 13: Fabric & Home Care Segment
-1% Pricing, flat MixOrganic Sales: h Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share was flat versus year agoNet Earnings: Productivity improvements and volume growth were more than offset by currency/commodity headwinds, pricing, and marketing in
Slide 14: Fabric & Home Care Highlights
Fabric Care organic sales grew low single digits versus year ago. Developed markets increased mid-single digits driven by innovation driven volume growth across laundry and FE. Developing markets were down low single digits as price increases and new compact liquid detergent launches were offset by
Slide 15: Baby, Feminine & Family Care Segment
-1% Pricing, -1% MixOrganic Sales: h Low single digits in Developed markets, h Low single digits in Developing marketsGlobal value share was flat versus year agoNet Earnings: Productivity improvements and volume increases were more than offset by pricing, currency headwinds and marketing investments
Slide 16: Baby, Feminine & Family Care Highlights
Baby Care organic sales were flat versus year ago. Developed markets were down low single digits as strong growth on Pampers was more than offset by competitive promotional activity across taped diapers in NA. Developing markets were flat with growth in LA offset by softness in China.Feminine Care o
Slide 17: FY 2017 Guidance
FY 2017 Guidance
Slide 18: FY 2017 Guidance: Sales
FY ‘17 Organic Sales Growth 2% to 3% Currency & minor brand divestitures impact ~2% to 3% All-in Sales Growth ~Flat Raising guidance on organic sales to 2% to 3%Expect all-in sales growth to be in-line with FY 2016. FY 2017 GuidanceSales
Slide 19: FY 2017 Guidance: Earnings Per Share
FY ‘17 Core EPS Growth Up Mid-Single Digits All-in EPS Growth +48% to +50% * The Beauty businesses recently divested to Coty are accounted for as discontinued operations. All-in guidance includes the substantial gain estimate for the divestiture of 41 beauty brands to Coty Inc. Expect Core EPS growt
Slide 20: FY 2017 Guidance: Cash Generation & Usage
Adjusted Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 5% to 5.5%Dividends: $7B+Share Reduction from Coty Transaction: $9.4BDirect Share Repurchase: $5B+ FY 2017 GuidanceCash Generation & Usage
Slide 21: Potential Headwinds Not Included in Guidance
FY 2017 GuidancePotential Headwinds Not Included in Guidance Significant deceleration of market growth rates Further political and economic volatilityFurther foreign currency weaknessFurther commodity cost increases
Slide 22: P&G
P&G
Slide 23: Forward Looking Statements
Forward Looking Statements Certain statements in this release or presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based,