P&G(US:PG)2025-01-22 12:06Net Sales and Organic Sales Growth - Net sales for Q2 FY2025 were $21.9 billion, a 2% increase year-over-year, with organic sales growing 3%[1][5] - Organic sales growth was driven by a 2% increase in organic volume and a 1% increase from favorable geographic mix, with pricing having a neutral impact[5] - Net sales increased by 2% to $21,882 million in Q4 2024 compared to $21,441 million in Q4 2023[24] - Organic sales growth for Q4 2024 was 3%, with net sales growth of 2%, foreign exchange impact of 0%, and acquisition/divestiture impact of 1%[47] - Total company organic sales growth for FY 2025 is estimated to be +3% to +5%, with net sales growth of +2% to +4% and combined foreign exchange & acquisition/divestiture impact of +1%[47] Earnings and EPS - Diluted EPS increased 34% to $1.88, primarily due to a non-cash impairment of the Gillette intangible asset in the base year, while Core EPS grew 2% to $1.88[1][3][7] - Net earnings attributable to Procter & Gamble grew by 34% to $4,630 million in Q4 2024 from $3,468 million in Q4 2023[24] - Diluted net earnings per common share increased by 34% to $1.88 in Q4 2024 from $1.40 in Q4 2023[24] - Core EPS growth for FY 2025 is estimated to be +5% to +7%, with diluted EPS growth of +10% to +12% and impact of incremental non-core items of -5%[48] - Net earnings attributable to P&G for Q4 2024 were $4.630 billion, with core net earnings of $4.533 billion[44] - Diluted net earnings per common share for Q4 2024 were $1.88, with core EPS of $1.84 and currency-neutral EPS of $1.90[44] Operating Performance and Margins - Operating cash flow was $4.8 billion, and net earnings were $4.7 billion, with adjusted free cash flow productivity at 84%[2] - Reported operating margin increased 550 basis points, while Core operating margin decreased 80 basis points year-over-year[10] - Operating income rose by 30% to $5,741 million in Q4 2024 from $4,433 million in Q4 2023[24] - Core operating margin for Q4 2024 was 27.0%, with a currency-neutral core operating margin of 26.5%[44] - Core gross margin for Q4 2024 was 52.7%, with a currency-neutral core gross margin of 52.5%[44] - Core selling, general and administrative expense as a % of net sales for Q4 2024 was 25.7%, with a currency-neutral core selling, general and administrative expense as a % of net sales of 26.0%[44] Cash Flow and Free Cash Flow - Operating cash flow was $4.8 billion, and net earnings were $4.7 billion, with adjusted free cash flow productivity at 84%[2] - Total operating activities generated $9,127 million in cash for the six months ended December 31, 2024, compared to $10,004 million in the same period of 2023[28] - Cash, cash equivalents, and restricted cash increased by $748 million to $10,230 million at the end of December 2024 from $9,482 million at the beginning of the period[28] - Adjusted free cash flow for Q4 2024 was $3.9 billion, calculated as operating cash flow of $4.825 billion minus capital spending of $925 million[49] - Adjusted free cash flow productivity for Q4 2024 was 84%, with adjusted free cash flow of $3.9 billion and net earnings of $4.659 billion[50] Segment Performance - Baby, Feminine, and Family Care segment organic sales increased 4%, driven by strong volume growth in Family Care[6][7] - Beauty segment net sales remained flat at $3,848 million in Q4 2024, with a 10% decline in earnings before income taxes to $996 million[26] - Fabric & Home Care segment net sales grew by 2% to $7,575 million in Q4 2024, with a 1% decline in earnings before income taxes to $1,989 million[26] - Baby, Feminine & Family Care segment net sales increased by 3% to $5,298 million in Q4 2024, with a 2% rise in earnings before income taxes to $1,464 million[26] Shareholder Returns and Capital Allocation - The company returned $4.9 billion to shareholders via $2.4 billion in dividends and $2.5 billion in share repurchases[2] - P&G plans to pay around $10 billion in dividends and repurchase $6-7 billion of common shares in FY2025[17] Guidance and Outlook - Fiscal 2025 guidance maintains all-in sales growth at 2-4%, with organic sales growth expected to be 3-5%[11] - The company expects a commodity cost headwind of $200 million and a foreign exchange headwind of $300 million after tax for FY2025[13] - Core EPS growth for FY 2025 is estimated to be +5% to +7%, with diluted EPS growth of +10% to +12% and impact of incremental non-core items of -5%[48] - Total company organic sales growth for FY 2025 is estimated to be +3% to +5%, with net sales growth of +2% to +4% and combined foreign exchange & acquisition/divestiture impact of +1%[47] Balance Sheet and Assets - Total assets stood at $122,639 million as of December 31, 2024, compared to $122,370 million as of June 30, 2024[31] - Cash, cash equivalents, and restricted cash increased by $748 million to $10,230 million at the end of December 2024 from $9,482 million at the beginning of the period[28]