1.
|
Organic sales growth — page 3
|
2.
|
Core EPS and currency-neutral Core EPS — page 4
|
3.
|
Core gross margin and currency-neutral Core gross margin — page 6
|
4.
|
Core operating margin and currency-neutral Core operating margin — page 6
|
5.
|
Adjusted free cash flow and adjusted free cash flow productivity — page 7
|
•
|
Charges for early debt extinguishment: During fiscals 2021, 2018 and 2017, the Company recorded after-tax charges due to the early extinguishment of certain long-term debt. These charges represent the difference between the reacquisition price and the
par value of the debt extinguished.
|
•
|
Incremental Restructuring: The Company has historically had an ongoing restructuring program with annual spending in the range of $250 to $500 million before tax. Starting in 2012 through fiscal 2020, the Company had a strategic
productivity and cost savings initiative that resulted in incremental restructuring charges. The adjustment to Core earnings includes only the restructuring costs above the normal recurring level of restructuring costs.
|
•
|
Gain on Dissolution of the PGT Healthcare
Partnership: The Company dissolved our PGT Healthcare partnership, a venture between the Company and Teva Pharmaceuticals Industries, Ltd (Teva) in the OTC consumer healthcare business, during
fiscal 2019. The transaction was accounted for as a sale of the Teva portion of the PGT business; the Company recognized an after-tax gain on the dissolution.
|
•
|
Shave Care Impairment: In fiscal 2019, the Company recognized a one-time, non-cash, after-tax charge of $8.0 billion to adjust the carrying value of the Shave Care reporting unit. This was comprised of a before- and after-tax
impairment charge of $6.8 billion related to goodwill and an after-tax impairment charge of $1.2 billion to reduce the carrying value of the Gillette indefinite-lived intangible asset.
|
•
|
Anti-Dilutive Impacts: The Shave Care impairment charges caused certain equity instruments that are normally dilutive (and hence normally assumed converted or exercised for the purposes of determining diluted net earnings per common
share) to be anti-dilutive. Accordingly for U.S. GAAP diluted net earnings per common share, the instruments were not assumed to be converted or exercised. Specifically, in fiscal 2019, certain of our outstanding preferred shares and
share-based equity awards were not included in the diluted weighted average common shares outstanding. As a result of the non-GAAP Shave Care impairment adjustment, these instruments were dilutive for non-GAAP earnings per share.
|
•
|
Transitional Impacts of the U.S. Tax Act: The U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Act”) in December 2017. This resulted in a net charge for the fiscal year 2018. The
adjustment to core earnings includes only this transitional impact. It does not include the ongoing impacts of the lower U.S. statutory rate on pre-tax earnings.
|
•
|
Venezuela B/S remeasurement & devaluation impacts: Venezuela is a highly inflationary economy under U.S. GAAP. Prior to deconsolidation, the government enacted episodic changes to currency exchange mechanisms and rates, which resulted in currency remeasurement
charges for non-dollar denominated monetary assets and liabilities held by our Venezuelan subsidiaries in fiscal 2015.
|
•
|
Charges for Certain European legal matters: Several countries in Europe issued separate complaints alleging that the Company, along with several other companies, engaged in violations of competition laws in prior periods. In fiscal 2015, the Company
incurred after-tax charges of $11 million to adjust legal reserves related to these matters.
|
•
|
Venezuela deconsolidation charges: For accounting purposes, evolving conditions resulted in a lack of control over our Venezuelan subsidiaries. Therefore, in accordance with the applicable accounting standards for consolidation, effective June 30, 2015, we
deconsolidated our Venezuelan subsidiaries and began accounting for our investment in those subsidiaries using the cost method of accounting. The charge was incurred to write off our net assets related to Venezuela.
|
Three Months Ended
June 30, 2023 |
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition &
Divestiture Impact/Other* |
Organic Sales Growth
|
|||
Beauty
|
8%
|
4%
|
(1)%
|
11%
|
|||
Grooming
|
3%
|
5%
|
—%
|
8%
|
|||
Health Care
|
3%
|
2%
|
—%
|
5%
|
|||
Fabric Care & Home Care
|
5%
|
2%
|
1%
|
8%
|
|||
Baby, Feminine & Family Care
|
7%
|
3%
|
(1)%
|
9%
|
|||
Total Company
|
5%
|
3%
|
—%
|
8%
|
Fiscal Year Ended
June 30, 2023
|
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition &
Divestiture Impact/Other* |
Organic Sales Growth
|
|||
Total Company
|
2%
|
5%
|
—%
|
7%
|
Total Company
|
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition/ Divestiture Impact/Other*
|
Organic Sales Growth
|
|||
Q3 FY 2023
|
4%
|
4%
|
(1)%
|
7%
|
|||
Q2 FY 2023
|
(1)%
|
6%
|
—%
|
5%
|
|||
Q1 FY 2023
|
1%
|
6%
|
—%
|
7%
|
|||
Q4 FY 2022
|
3%
|
4%
|
—%
|
7%
|
|||
Q3 FY 2022
|
7%
|
3%
|
—%
|
10%
|
|||
Q2 FY 2022
|
6%
|
—%
|
—%
|
6%
|
|||
Q1 FY 2022
|
5%
|
(1)%
|
—%
|
4%
|
Total Company
|
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition/ Divestiture Impact/Other*
|
Organic Sales Growth
|
|||
FY 2022
|
5%
|
2%
|
—%
|
7%
|
|||
FY 2021
|
7%
|
(1)%
|
—%
|
6%
|
|||
FY 2020
|
5%
|
2%
|
(1)%
|
6%
|
|||
FY 2019
|
1%
|
4%
|
—%
|
5%
|
|||
FY 2018
|
3%
|
(2)%
|
—%
|
1%
|
|||
FY 2017
|
—%
|
2%
|
—%
|
2%
|
|||
FY 2016
|
(8)%
|
6%
|
3%
|
1%
|
Total Company
|
Net Sales Growth
|
Combined Foreign Exchange &
Acquisition/Divestiture Impact/Other*
|
Organic Sales Growth
|
|||
FY 2024 (Estimate)
|
+3% to +4%
|
+1%
|
+4% to +5%
|
Three Months Ended
June 30 |
||
2023
|
2022
|
|
Diluted Net EPS
|
$1.37
|
$1.21
|
Adjustments*
|
—
|
—
|
Core EPS
|
$1.37
|
$1.21
|
Percentage change vs. prior period Core EPS
|
13%
|
|
Currency Impact to Earnings
|
0.11
|
|
Currency-Neutral Core EPS
|
$1.48
|
|
Percentage change vs. prior period Core EPS
|
22%
|
Fiscal Year Ended
June 30 |
||
2023
|
2022
|
|
Diluted Net EPS
|
$5.90
|
$5.81
|
Adjustments*
|
—
|
—
|
Core EPS
|
$5.90
|
$5.81
|
Percentage change vs. prior period Core EPS
|
2%
|
|
Currency Impact to Earnings
|
0.55
|
|
Currency-Neutral Core EPS
|
$6.45
|
|
Percentage change vs. prior period Core EPS
|
11%
|
2023
|
2022
|
2021
|
2020
|
2019
|
2018
|
2017
|
2016
|
2015
|
|
Diluted Net Earnings Per Common Share from Continuing Operations, attributable to P&G
|
$5.90
|
$5.81
|
$5.50
|
$4.96
|
$1.43
|
$3.67
|
$3.69
|
$3.49
|
$2.84
|
Early Debt Extinguishment Charges
|
0.16
|
0.09
|
0.13
|
||||||
Incremental Restructuring
|
0.16
|
0.13
|
0.23
|
0.10
|
0.18
|
0.17
|
|||
Gain on PGT Dissolution
|
(0.13)
|
||||||||
Shave Care Impairment
|
3.03
|
||||||||
Anti-dilutive Impacts
|
0.06
|
||||||||
Transitional Impact of U.S. Tax Act
|
0.23
|
||||||||
Venezuela B/S Remeasurement and Devaluation Impacts
|
0.04
|
||||||||
Charges for Pending European Legal Matters
|
0.01
|
||||||||
Venezuela Deconsolidation Charges
|
0.71
|
||||||||
Rounding
|
(0.01)
|
||||||||
Core EPS
|
$5.90
|
$5.81
|
$5.66
|
$5.12
|
$4.52
|
$4.22
|
$3.92
|
$3.67
|
$3.76
|
Core EPS growth vs prior year
|
2%
|
3%
|
11%
|
13%
|
7%
|
8%
|
7%
|
(2)%
|
|
Currency Impact to Earnings
|
0.55
|
0.11
|
0.04
|
0.15
|
0.35
|
(0.05)
|
0.15
|
0.35
|
|
Currency-Neutral Core EPS
|
$6.45
|
$5.92
|
$5.70
|
$5.27
|
$4.87
|
$4.17
|
$4.07
|
$4.02
|
|
Percentage change vs. prior period Core EPS
|
11%
|
5%
|
11%
|
17%
|
15%
|
6%
|
11%
|
7%
|
|
2018 – 2023 Core EPS growth
|
40%
|
Q1
FY22
|
Q1
FY21
|
Q2
FY22
|
Q2
FY21
|
Q3
FY22
|
Q3
FY21
|
Q4
FY22
|
Q4
FY21
|
Q1
FY23
|
Q1
FY22
|
Q2
FY23
|
Q2
FY22
|
Q3
FY23
|
Q3
FY22
|
|
Diluted Net EPS
|
$1.61
|
$1.63
|
$1.66
|
$1.47
|
$1.33
|
$1.26
|
$1.21
|
$1.13
|
$1.57
|
$1.61
|
$1.59
|
$1.66
|
$1.37
|
$1.33
|
Early Debt Extinguishment
|
0.16
|
|||||||||||||
Rounding
|
0.01
|
|||||||||||||
Core EPS
|
$1.61
|
$1.63
|
$1.66
|
$1.64
|
$1.33
|
$1.26
|
$1.21
|
$1.13
|
$1.57
|
$1.61
|
$1.59
|
$1.66
|
$1.37
|
$1.33
|
Percentage change vs. prior period Diluted Net EPS
|
(1)%
|
1%
|
6%
|
7%
|
(2)%
|
(4)%
|
3%
|
|||||||
Currency Impact to Earnings
|
(0.03)
|
0.02
|
0.05
|
0.08
|
0.16
|
0.16
|
0.13
|
|||||||
Currency-Neutral Core EPS
|
$1.58
|
$1.68
|
$1.38
|
$1.29
|
$1.73
|
$1.75
|
$1.50
|
|||||||
Percentage change vs. prior period Core EPS
|
(3)%
|
2%
|
10%
|
14%
|
7%
|
5%
|
13%
|
Total Company
|
Diluted EPS Growth
|
Impact of FX
|
Currency-neutral EPS Growth
|
FY 2024 (Estimate)
|
+6% to +9%
|
3%
|
+9% to +12%
|
Three Months Ended June 30
|
||
2023
|
2022
|
|
Gross Margin
|
48.4%
|
44.6%
|
Adjustments*
|
—
|
—
|
Core Gross Margin
|
48.4%
|
44.6%
|
Basis point change vs. prior year Core gross margin
|
380
|
|
Currency Impact to Margin
|
0.7%
|
|
Currency-Neutral Core Gross Margin
|
49.1%
|
|
Basis point change vs prior year Core gross margin
|
450
|
Fiscal Year Ended June 30
|
||
2023
|
2022
|
|
Gross Margin
|
47.9%
|
47.4%
|
Adjustments*
|
—
|
—
|
Core Gross Margin
|
47.9%
|
47.4%
|
Basis point change vs. prior year Core gross margin
|
50
|
|
Currency Impact to Margin
|
0.5%
|
|
Currency-Neutral Core Gross Margin
|
48.4%
|
|
Basis point change vs prior year Core gross margin
|
100
|
Three Months Ended June 30
|
||
2023
|
2022
|
|
Operating Margin
|
20.3%
|
18.4%
|
Adjustments*
|
—
|
|
Core Operating Margin
|
20.3%
|
18.4%
|
Basis point change vs. prior year Core operating margin
|
190
|
|
Currency Impact Margin
|
1.2%
|
|
Currency-Neutral Core Operating Margin
|
21.5%
|
|
Basis point change vs. prior year Core operating margin
|
310
|
Fiscal Year Ended June 30
|
||
2023
|
2022
|
|
Operating Margin
|
22.1%
|
22.2%
|
Adjustments*
|
—
|
|
Core Operating Margin
|
22.1%
|
22.2%
|
Basis point change vs. prior year Core operating margin
|
(10)
|
|
Currency Impact Margin
|
1.1%
|
|
Currency-Neutral Core Operating Margin
|
23.2%
|
|
Basis point change vs. prior year Core operating margin
|
100
|
Three Months Ended June 30, 2023
|
|||||
Operating Cash Flow
|
Capital Spending
|
Adjusted Free Cash Flow
|
Net Earnings
|
Adjusted Free Cash Flow Productivity
|
|
$5,341
|
$(734)
|
$4,607
|
$3,392
|
136%
|
Fiscal Year Ended June 30, 2023
|
||||||
Operating Cash Flow
|
Capital Spending
|
U.S. Tax Act Payments
|
Adjusted Free Cash Flow
|
Net Earnings
|
Adjusted Free Cash Flow Productivity
|
|
$16,848
|
$(3,062)
|
$225
|
$14,011
|
$14,738
|
95%
|
Fiscal Year
|
Operating Cash Flow
|
Capital Spending
|
Adjustments to Operating Cash Flow*
|
Adjusted Free Cash Flow
|
Net Earnings
|
Adjustments to Net Earnings**
|
Net Earnings as Adjusted
|
Adjusted Free Cash Flow Productivity
|
2023
|
$16,848
|
$(3,062)
|
$225
|
$14,011
|
$14,738
|
—
|
$14,738
|
95%
|
2022
|
$16,723
|
$(3,156)
|
$225
|
$13,792
|
$14,793
|
—
|
$14,793
|
93%
|
2021
|
$18,371
|
$(2,787)
|
$225
|
$15,809
|
$14,352
|
$427
|
$14,779
|
107%
|
2020
|
$17,403
|
$(3,073)
|
$543
|
$14,873
|
$13,103
|
—
|
$13,103
|
114%
|
2019
|
$15,242
|
$(3,347)
|
$235
|
$12,130
|
$3,966
|
$7,625
|
$11,591
|
105%
|
2018
|
$14,867
|
$(3,717)
|
—
|
$11,150
|
$9,861
|
$845
|
$10,706
|
104%
|
2017
|
$12,753
|
$(3,384)
|
$418
|
$9,787
|
$15,411
|
$(4,990)
|
$10,421
|
94%
|
2016
|
$15,435
|
$(3,314)
|
—
|
$12,121
|
$10,604
|
$(72)
|
$10,532
|
115%
|
2015
|
$14,608
|
$(3,736)
|
$729
|
$11,601
|
$7,144
|
$4,187
|
$11,331
|
102%
|
2014
|
$13,958
|
$(3,848)
|
—
|
$10,110
|
$11,785
|
—
|
$11,785
|
86%
|
10-Year Average
|
$12,538
|
$12,378
|
101%
|