1.
|
Organic sales growth — page 4
|
2.
|
Core EPS and currency-neutral Core EPS — page 6
|
3.
|
Core gross margin and currency-neutral Core gross margin – page 9
|
4.
|
Core operating profit margin and currency-neutral Core operating profit margin — page 10
|
5.
|
Free cash flow productivity and Adjusted free cash flow productivity — page 10
|
•
|
Incremental restructuring: The Company has historically had an ongoing level of restructuring activities. Such activities have resulted in ongoing annual restructuring related charges of approximately $250 - $500 million
before tax. Since 2012, the Company has 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
what we believe are the normal recurring level of restructuring costs. In fiscal 2021 and onwards, the Company expects to incur restructuring costs within our historical ongoing level.
|
•
|
Transitional Impact of U.S. Tax Act: In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "U.S. Tax Act"). This resulted in a net
charge of $602 million for the fiscal year 2018. The adjustment to Core earnings only includes this transitional impact. It does not include the ongoing impacts of the lower U.S. statutory rate on the respective years’
earnings.
|
•
|
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 2016, 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.
|
•
|
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.
|
•
|
Gain on Dissolution of the PGT Healthcare Partnership: The Company finalized the dissolution of our PGT Healthcare partnership, a venture between the Company and Teva Pharmaceuticals Industries, Ltd (Teva) in the OTC consumer
healthcare business, in the quarter ended September 30, 2018. 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 of $353 million.
|
•
|
Shave Care Impairment: In the fourth quarter of fiscal 2019, the company recognized a one-time, non-cash, after-tax charge of $8.0 billion ($8.3 billion before tax) to adjust the carrying values 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 ($1.6 billion before tax) to reduce the carrying value of the Gillette
indefinite-lived intangible assets.
|
•
|
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 share) to be anti-dilutive. Accordingly, for U.S. GAAP diluted earnings per share, these instruments were not assumed to be concerted or exercised. Specifically, in the fourth quarter and total fiscal 2019, the weighted
average outstanding preferred shares were not included in the diluted weighted average common shares outstanding. Additionally, in the fourth quarter of fiscal 2019, none of our outstanding share-based equity awards were
included in the diluted weighted average common shares outstanding. As a result of the non-GAAP Shave Care impairment adjustment, these instruments are dilutive for non-GAAP earnings per share.
|
•
|
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.
|
Three Months Ended
June 30, 2022 |
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition &
Divestiture Impact/Other* |
Organic Sales Growth
|
|||
Beauty
|
(1)%
|
3%
|
(2)%
|
-%
|
|||
Grooming
|
(3)%
|
6%
|
-%
|
3%
|
|||
Health Care
|
5%
|
4%
|
-%
|
9%
|
|||
Fabric Care & Home Care
|
4%
|
5%
|
-%
|
9%
|
|||
Baby, Feminine & Family Care
|
3%
|
3%
|
1%
|
7%
|
|||
Total P&G
|
3%
|
4%
|
-%
|
7%
|
Twelve Months Ended
June 30, 2022 |
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition &
Divestiture Impact/Other* |
Organic Sales Growth
|
|||
Total P&G
|
5%
|
2%
|
-%
|
7%
|
Total Company
|
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition/ Divestiture Impact/Other*
|
Organic Sales Growth
|
|||
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
|
Foreign Exchange Impact
|
Acquisition/ Divestiture Impact/Other*
|
Organic Sales Growth
|
|||
JFM 2022
|
7%
|
3%
|
-%
|
10%
|
|||
OND 2021
|
6%
|
-%
|
-%
|
6%
|
|||
JAS 2021
|
5%
|
(1)%
|
-%
|
4%
|
|||
AMJ 2021
|
7%
|
(3)%
|
-%
|
4%
|
|||
JFM 2021
|
5%
|
(1)%
|
-%
|
4%
|
|||
OND 2020
|
8%
|
-%
|
-%
|
8%
|
|||
JAS 2020
|
9%
|
1%
|
(1)%
|
9%
|
Total Company
|
Net Sales Growth
|
Foreign Exchange Impact
|
Acquisition &
Divestiture Impact/Other* |
Organic Sales Growth
|
|||
Fiscal Year 2022
|
5%
|
2%
|
-%
|
7%
|
|||
Fiscal Year 2021
|
7%
|
(1)%
|
-%
|
6%
|
|||
Past Two Years Stacked
|
12%
|
13%
|
|||||
Fiscal Year 2020
|
5%
|
2%
|
(1)%
|
6%
|
|||
Past Three Years Stacked
|
17%
|
19%
|
Total Company
|
Net Sales Growth
|
Combined Foreign Exchange &
Acquisition/Divestiture Impact/Other*
|
Organic Sales Growth
|
|||
FY 2023 (Estimate)
|
+0% to +2%
|
+3%
|
+3% to +5%
|
Three Months Ended
June 30 |
|||
2022
|
2021
|
||
Diluted Net Earnings Per Share
|
$1.21
|
$1.13
|
|
Percentage change vs. prior period
|
7%
|
||
Adjustments*
|
-
|
-
|
|
Core EPS
|
$1.21
|
$1.13
|
|
Percentage change vs. prior period Core EPS
|
7%
|
||
Currency Impact to Earnings
|
0.06
|
||
Currency-Neutral Core EPS
|
$1.27
|
||
Percentage change vs. prior period Core EPS
|
12%
|
Twelve Months Ended
June 30 |
|||
2022
|
2021
|
||
Diluted Net Earnings Per Share
|
$5.81
|
$5.50
|
|
Percentage change vs. prior period
|
6%
|
||
Early Debt Extinguishment
|
-
|
0.16
|
|
Core EPS
|
$5.81
|
$5.66
|
|
Percentage change vs. prior period
|
3%
|
||
Currency Impact to Earnings
|
0.11
|
||
Currency-Neutral Core EPS
|
$5.92
|
||
Percentage change vs. prior period Core EPS
|
5%
|
2021
|
2020
|
2019
|
2018
|
2017
|
2016
|
2015
|
|
Diluted Net Earnings Per Share from Continuing Operations, attributable to P&G
|
$5.50
|
$4.96
|
$1.43
|
$ 3.67
|
$ 3.69
|
$ 3.49
|
$ 2.84
|
Incremental Restructuring
|
0.16
|
0.13
|
0.23
|
0.10
|
0.18
|
0.17
|
|
Early Debt Extinguishment Charges
|
0.16
|
0.09
|
0.13
|
||||
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
|
||||||
Gain on PGT Dissolution
|
(0.13)
|
||||||
Shave Care Impairment
|
3.03
|
||||||
Anti-dilutive Impacts
|
0.06
|
||||||
Rounding
|
(0.01)
|
||||||
Core EPS
|
5.66
|
$5.12
|
$4.52
|
$ 4.22
|
$ 3.92
|
$ 3.67
|
$3.76
|
Percentage change vs. prior period
|
11%
|
13%
|
7%
|
8%
|
7%
|
(2)%
|
|
Currency Impact to Earnings
|
0.04
|
0.15
|
0.35
|
(0.05)
|
0.15
|
0.35
|
|
Currency-Neutral Core EPS
|
$5.70
|
$5.27
|
$4.87
|
$ 4.17
|
$ 4.07
|
$ 4.02
|
|
Percentage change vs. prior period Core EPS
|
11%
|
17%
|
15%
|
6%
|
11%
|
7%
|
JAS 20
|
JAS 19
|
OND 20
|
OND 19
|
JFM 21
|
JFM 20
|
AMJ 21
|
AMJ 20
|
JAS 21
|
JAS 20
|
OND 21
|
OND 20
|
JFM 22
|
JFM 21
|
|
Diluted Net Earnings Per Share attributable to P&G
|
$1.63
|
$1.36
|
$1.47
|
$1.41
|
$1.26
|
$1.12
|
$1.13
|
$1.07
|
$1.61
|
$1.63
|
$1.66
|
$1.47
|
$1.33
|
$1.26
|
Incremental Restructuring
|
0.01
|
0.01
|
0.05
|
0.09
|
||||||||||
Gain on Dissolution of PGT Partnership
|
||||||||||||||
Shave Care Impairment
|
||||||||||||||
Anti-dilutive Impacts
|
||||||||||||||
Early Debt Extinguishment
|
0.16
|
0.16
|
||||||||||||
Rounding
|
0.01
|
0.01
|
||||||||||||
Core EPS
|
$1.63
|
$1.37
|
$1.64
|
$1.42
|
$1.26
|
$1.17
|
$1.13
|
$1.16
|
$1.61
|
$1.63
|
$1.66
|
$1.64
|
$1.33
|
$1.26
|
Percentage change vs. prior period
|
19%
|
15%
|
8%
|
(3)%
|
(1)%
|
1%
|
6%
|
|||||||
Currency Impact to Earnings
|
0.04
|
0.03
|
-
|
(0.02)
|
(0.03)
|
(0.02)
|
0.05
|
|||||||
Currency-Neutral Core EPS
|
$1.67
|
$1.67
|
$1.26
|
$1.11
|
$1.58
|
$1.68
|
$1.38
|
|||||||
Percentage change vs. prior period Core EPS
|
22%
|
18%
|
8%
|
(4)%
|
(3)%
|
2%
|
10%
|
Total Company
|
Diluted EPS Growth
|
Impact of FX
|
Currency-neutral EPS Growth
|
FY 2023 (Estimate)
|
+0% to +4%
|
6%
|
+6% to +10%
|
Three Months Ended
June 30 |
||
2022
|
2021
|
|
Gross Margin
|
44.6%
|
48.3%
|
Basis point change vs. prior year gross margin
|
(370)
|
|
Adjustments*
|
-
|
-
|
Core Gross Margin
|
44.6%
|
48.3%
|
Basis point change vs. prior year Core margin
|
(370)
|
|
Currency Impact to Margin
|
0.4%
|
|
Currency-Neutral Core Gross Margin
|
45.0%
|
|
Basis point change vs prior year Core margin
|
(330)
|
Twelve Months Ended
June 30 |
||
2022
|
2021
|
|
Gross Margin
|
47.4%
|
51.2%
|
Basis point change vs. prior year gross margin
|
(380)
|
|
Adjustments*
|
-
|
-
|
Core Gross Margin
|
47.4%
|
51.2%
|
Basis point change vs. prior year Core margin
|
(380)
|
|
Currency Impact to Margin
|
-
|
|
Currency-Neutral Core Gross Margin
|
47.4%
|
|
Basis point change vs prior year Core margin
|
(380)
|
Three Months Ended
June 30 |
||
2022
|
2021
|
|
Operating Profit Margin
|
18.4%
|
18.7%
|
Basis point change vs. prior year Core margin
|
(30)
|
|
Adjustments*
|
-
|
|
Core Operating Profit Margin
|
18.4%
|
18.7%
|
Basis point change vs. prior year Core margin
|
(30)
|
|
Currency Impact Margin
|
0.5%
|
|
Currency-Neutral Core Operating Profit Margin
|
18.9%
|
|
Basis point change vs. prior year Core Margin
|
20
|
Twelve Months Ended
June 30 |
||
2022
|
2021
|
|
Operating Profit Margin
|
22.2%
|
23.6%
|
Basis point change vs. prior year Core margin
|
(140)
|
|
Adjustments*
|
-
|
|
Core Operating Profit Margin
|
22.2%
|
23.6%
|
Basis point change vs. prior year Core margin
|
(140)
|
|
Currency Impact Margin
|
0.2%
|
|
Currency-Neutral Core Operating Profit Margin
|
22.4%
|
|
Basis point change vs. prior year Core Margin
|
(120)
|
Three Months Ended June 30, 2022
|
||||
Operating Cash Flow
|
Capital Spending
|
Free Cash Flow
|
Net Earnings
|
Free Cash Flow Productivity
|
$3,713
|
$(692)
|
$3,021
|
$3,058
|
99%
|
Twelve Months Ended June 30, 2022
|
|||||
Operating Cash Flow
|
Capital Spending
|
U.S. Tax Act Payment
|
Adjusted Free Cash Flow
|
Net Earnings
|
Adjusted Free Cash Flow Productivity
|
$16,723
|
$(3,156)
|
$225
|
$13,792
|
$14,793
|
93%
|