07.30.24
Procter & Gamble reported its fourth quarter and fiscal year 2024 results.
Jon Moeller, Chairman of the Board, President and CEO, said,
“Fiscal year 2024 was another year of strong results for P&G. The team met or exceeded our going-in plans for organic sales growth, core EPS growth, cash generation, and cash returned to shareowners in a challenging economic and geopolitical environment. As we look forward to fiscal 2025, we expect to deliver strong organic sales growth, EPS growth, and free cash flow productivity – each in line with our long-term growth algorithm. We remain committed to our integrated strategy – a focused product portfolio of daily use categories where performance drives brand choice, superiority (of product performance, packaging, brand communication, retail execution, and consumer and customer value), productivity, constructive disruption, and an agile and accountable organization – all aimed at delivering sustainable, balanced growth and value creation.”
Fourth Quarter Results
P&G reported net sales for Q4 were $20.5 billion, which was unchanged from the prior year. The company saw a 1% increase in all-in volume and a one percent increase due to higher pricing offset by two percentage points of unfavorable foreign exchange impacts.
Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, increased by 2%.
The beauty segment’s organic sales increased by 3% versus a year ago. Skin and Personal Care organic sales were unchanged, as growth from increased pricing was offset by lower sales of the super-premium SK-II brand in Greater China. Hair Care organic sales increased by high single digits driven by increased pricing and a favorable product mix due to the growth of premium products.
Fiscal Year Results
P&G reported $84.0 billion in net sales, a 2% increase from 2023. Organic sales, excluding the impacts of foreign exchange and acquisitions and divestitures, increased by 4%. The company generated an operating cash flow of $19.8 billion and net earnings of $15.0 billion for the fiscal year.
Looking ahead to next year, P&G expects fiscal year 2025 all-in sales growth in the range of 2 to 4% versus the prior year. Foreign exchange is expected to be a headwind of approximately one percentage point to all-in sales growth. Also, the company expects organic sales growth in the range of 3 to 5%.
