FORM 8-K
|
Date of Report (Date of earliest event reported)
|
July 30, 2019
|
|
|
Ohio
|
|
1-434
|
|
31-0411980
|
(State of Incorporation)
|
|
(Commission File Number)
|
|
(I.R.S. Employer Identification Number)
|
One Procter & Gamble Plaza, Cincinnati, Ohio
|
|
45202
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, without Par Value
|
PG
|
New York Stock Exchange
|
4.125% EUR notes due December 2020
|
PG20A
|
New York Stock Exchange
|
0.275% Notes due 2020
|
PG20
|
New York Stock Exchange
|
2.000% Notes due 2021
|
PG21
|
New York Stock Exchange
|
2.000% Notes due 2022
|
PG22B
|
New York Stock Exchange
|
1.125% Notes due 2023
|
PG23A
|
New York Stock Exchange
|
0.500% Notes due 2024
|
PG24A
|
New York Stock Exchange
|
0.625% Notes due 2024
|
PG24B
|
New York Stock Exchange
|
1.375% Notes due 2025
|
PG25
|
New York Stock Exchange
|
4.875% EUR notes due May 2027
|
PG27A
|
New York Stock Exchange
|
1.200% Notes due 2028
|
PG28
|
New York Stock Exchange
|
1.250% Notes due 2029
|
PG29B
|
New York Stock Exchange
|
1.800% Notes due 2029
|
PG29A
|
New York Stock Exchange
|
6.250% GBP notes due January 2030
|
PG30
|
New York Stock Exchange
|
5.250% GBP notes due January 2033
|
PG33
|
New York Stock Exchange
|
1.875% Notes due 2038
|
PG38
|
New York Stock Exchange
|
ITEM 2.02
|
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
|
On July 30, 2019, The Procter & Gamble Company (the "Company") issued a news release with respect to earnings for the quarter ended June 30, 2019. The Company is furnishing this 8-K pursuant to Item 2.02, "Results of Operations and Financial Condition."
|
ITEM 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS
|
Exhibit Number
|
Description
|
99.1
|
News Release by The Procter & Gamble Company dated July 30, 2019.
|
THE PROCTER & GAMBLE COMPANY
|
|
By
|
/s/ SANDRA T. LANE
|
|
Sandra T. Lane, Assistant Secretary
|
|
July 30, 2019
|
News Release
|
The Procter & Gamble Company
|
|
One P&G Plaza
|
|
Cincinnati, OH 45202
|
P&G ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2019 RESULTS
|
Q4’19 GAAP:
Net Sales +4%; Diluted Net Loss per Share $2.12, -394%
Q4’19 CORE:
Organic Sales +7%; Core EPS $1.10, +17%; Currency-Neutral Core EPS +26%
|
FY ’19 GAAP:
Net Sales +1%; Diluted Net EPS $1.43, -61%
FY ’19 CORE:
Organic Sales +5%; Core EPS $4.52, +7%; Currency-Neutral Core EPS +15%
|
April - June 2019 Net Sales Drivers
(1)
|
Volume
|
Foreign Exchange
|
Price
|
Mix
|
Other
(2)
|
Net Sales
|
Organic Volume
|
Organic Sales
|
Beauty
|
2%
|
(5)%
|
2%
|
5%
|
(1)%
|
3%
|
1%
|
8%
|
Grooming
|
(1)%
|
(6)%
|
3%
|
1%
|
—%
|
(3)%
|
(1)%
|
4%
|
Health Care
|
8%
|
(4)%
|
3%
|
4%
|
2%
|
13%
|
3%
|
10%
|
Fabric & Home Care
|
5%
|
(4)%
|
4%
|
1%
|
(1)%
|
5%
|
5%
|
10%
|
Baby, Feminine & Family Care
|
1%
|
(4)%
|
3%
|
1%
|
—%
|
1%
|
1%
|
5%
|
Total P&G
|
3%
|
(4)%
|
3%
|
2%
|
—%
|
4%
|
3%
|
7%
|
(1)
|
Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
|
(2)
|
Other includes the sales mix impact from acquisitions and divestitures, the impact from the July 1, 2018 adoption of new accounting standards for "Revenue from Contracts with Customers" and rounding impacts necessary to reconcile volume to net sales.
|
•
|
Beauty segment organic sales increased eight percent versus year ago. Skin and Personal Care organic sales increased mid-teens driven by market growth, innovation, positive product mix from the disproportionate growth of the super-premium SK-II brand and Olay Skin Care and increased pricing. Hair Care organic sales increased low single digits due to innovation and devaluation-driven price increases.
|
•
|
Grooming segment organic sales increased four percent. Shave Care organic sales increased low single digits as positive geographic mix help from the growth of developed regions and the benefit of devaluation-driven price increases were partially offset by related unit volume declines and market contraction in certain regions. Appliances organic sales increased double digits due to premium innovation, positive mix help from the disproportionate growth of developed regions and increased pricing.
|
•
|
Health Care segment organic sales increased ten percent. Oral Care organic sales increased high single digits driven by premium innovation, positive mix from the disproportionate growth of developed regions and premium power brush and paste products and increased pricing. Personal Health Care organic sales increased mid-teens due to innovation, a late season increase in cough and cold incidents and favorable mix due to the disproportionate growth of developed regions and respiratory products which have higher than category-average selling prices.
|
•
|
Fabric and Home Care segment organic sales increased ten percent. Fabric Care organic sales increased double digits driven by innovation, market growth, devaluation-related pricing and positive mix due to the disproportionate growth of premium products. Home Care organic sales increased double digits driven by innovation and devaluation-related price increases.
|
•
|
Baby, Feminine and Family Care segment organic sales increased five percent. Baby Care organic sales increased low single digits due to devaluation-related price increases and positive mix from the disproportionate growth of premium products, partially offset by reduced volumes due to increased pricing, competitive activity and category contraction in certain markets. Feminine Care organic sales increased high single digits driven by innovation, favorable mix due to the disproportionate growth of premium products and devaluation-related price increases. Family Care organic sales increased mid-single digits due to innovation and increased pricing, partially offset by negative mix impact from the disproportionate growth of the club channel.
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
|
|||||||||||||||||||
|
Three Months Ended June 30
|
|
Twelve Months Ended June 30
|
||||||||||||||||
|
2019
|
|
2018
|
|
% Chg
|
|
2019
|
|
2018
|
|
% Chg
|
||||||||
NET SALES
|
$
|
17,094
|
|
|
$
|
16,503
|
|
|
4%
|
|
$
|
67,684
|
|
|
$
|
66,832
|
|
|
1%
|
Cost of products sold
|
8,938
|
|
|
9,070
|
|
|
(1)%
|
|
34,768
|
|
|
34,432
|
|
|
1%
|
||||
GROSS PROFIT
|
8,156
|
|
|
7,433
|
|
|
10%
|
|
32,916
|
|
|
32,400
|
|
|
2%
|
||||
Selling, general and administrative expense
|
5,003
|
|
|
4,846
|
|
|
3%
|
|
19,084
|
|
|
19,037
|
|
|
—%
|
||||
Goodwill and indefinite-lived intangibles impairment charges
|
8,345
|
|
|
—
|
|
|
|
|
8,345
|
|
|
—
|
|
|
|
||||
OPERATING INCOME/(LOSS)
|
(5,192
|
)
|
|
2,587
|
|
|
(301)%
|
|
5,487
|
|
|
13,363
|
|
|
(59)%
|
||||
Interest expense
|
111
|
|
|
136
|
|
|
(18)%
|
|
509
|
|
|
506
|
|
|
1%
|
||||
Interest income
|
52
|
|
|
63
|
|
|
(17)%
|
|
220
|
|
|
247
|
|
|
(11)%
|
||||
Other non-operating income/(expense), net
|
186
|
|
|
(225
|
)
|
|
(183)%
|
|
871
|
|
|
222
|
|
|
292%
|
||||
EARNINGS/(LOSS) BEFORE INCOME TAXES
|
(5,065
|
)
|
|
2,289
|
|
|
(321)%
|
|
6,069
|
|
|
13,326
|
|
|
(54)%
|
||||
Income taxes
|
172
|
|
|
399
|
|
|
(57)%
|
|
2,103
|
|
|
3,465
|
|
|
(39)%
|
||||
NET EARNINGS/(LOSS)
|
(5,237
|
)
|
|
1,890
|
|
|
(377)%
|
|
3,966
|
|
|
9,861
|
|
|
(60)%
|
||||
Less: Net earnings/(loss) attributable to noncontrolling interests
|
4
|
|
|
(1
|
)
|
|
N/A
|
|
69
|
|
|
111
|
|
|
(38)%
|
||||
NET EARNINGS/(LOSS) ATTRIBUTABLE TO PROCTER & GAMBLE
|
$
|
(5,241
|
)
|
|
$
|
1,891
|
|
|
(377)%
|
|
$
|
3,897
|
|
|
$
|
9,750
|
|
|
(60)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EFFECTIVE TAX RATE
|
(3.4
|
)%
|
|
17.4
|
%
|
|
|
|
34.7
|
%
|
|
26.0
|
%
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
NET EARNINGS PER COMMON SHARE:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(2.12
|
)
|
|
$
|
0.73
|
|
|
(390)%
|
|
$
|
1.45
|
|
|
$
|
3.75
|
|
|
(61)%
|
Diluted
|
$
|
(2.12
|
)
|
|
$
|
0.72
|
|
|
(394)%
|
|
$
|
1.43
|
|
|
$
|
3.67
|
|
|
(61)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
DIVIDENDS PER COMMON SHARE
|
$
|
0.7459
|
|
|
$
|
0.7172
|
|
|
4%
|
|
$
|
2.8975
|
|
|
$
|
2.7860
|
|
|
4%
|
Diluted Weighted Average Common Shares Outstanding
|
2,509.6
|
|
|
2,620.9
|
|
|
|
|
2,539.5
|
|
|
2,656.7
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
COMPARISONS AS A % OF NET SALES
|
|
|
|
|
Basis Pt Change
|
|
|
|
|
|
Basis Pt Change
|
||||||||
Gross margin
|
47.7%
|
|
45.0%
|
|
270
|
|
48.6%
|
|
48.5%
|
|
10
|
||||||||
Selling, general and administrative expense
|
29.3%
|
|
29.4%
|
|
(10)
|
|
28.2%
|
|
28.5%
|
|
(30)
|
||||||||
Operating margin
|
(30.4)%
|
|
15.7%
|
|
(4,610)
|
|
8.1%
|
|
20.0%
|
|
(1,190)
|
||||||||
Earnings/(loss) from continuing operations before income taxes
|
(29.6)%
|
|
13.9%
|
|
(4,350)
|
|
9.0%
|
|
19.9%
|
|
(1,090)
|
||||||||
Net earnings/(loss) from continuing operations
|
(30.6)%
|
|
11.5%
|
|
(4,210)
|
|
5.9%
|
|
14.8%
|
|
(890)
|
||||||||
Net earnings/(loss) attributable to Procter & Gamble
|
(30.7)%
|
|
11.5%
|
|
(4,220)
|
|
5.8%
|
|
14.6%
|
|
(880)
|
(1)
|
Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts) Consolidated Earnings Information |
||||||
|
|
|||||
|
Three Months Ended June 30, 2019
|
|||||
|
Net Sales
|
% Change Versus Year Ago
|
Earnings/(Loss) from Continuing Operations Before Income Taxes
|
% Change Versus Year Ago
|
Net Earnings/(Loss) from Continuing Operations
|
% Change Versus Year Ago
|
Beauty
|
$3,190
|
3%
|
$696
|
(2)%
|
$555
|
2%
|
Grooming
|
1,596
|
(3)%
|
583
|
34%
|
467
|
35%
|
Health Care
|
2,038
|
13%
|
413
|
24%
|
309
|
42%
|
Fabric & Home Care
|
5,653
|
5%
|
1,209
|
33%
|
934
|
58%
|
Baby, Feminine & Family Care
|
4,501
|
1%
|
900
|
16%
|
682
|
41%
|
Corporate
|
116
|
(3)%
|
(8,866)
|
N/A
|
(8,184)
|
N/A
|
Total Company
|
$17,094
|
4%
|
$(5,065)
|
(321)%
|
$(5,237)
|
(377)%
|
|
Three Months Ended June 30, 2019
|
||||||
|
(Percent Change vs. Year Ago)
(1)
|
||||||
|
Volume with Acquisitions & Divestitures
|
Volume Excluding Acquisitions & Divestitures
|
Foreign Exchange
|
Price
|
Mix
|
Other
(2)
|
Net Sales Growth
|
Beauty
|
2%
|
1%
|
(5)%
|
2%
|
5%
|
(1)%
|
3%
|
Grooming
|
(1)%
|
(1)%
|
(6)%
|
3%
|
1%
|
—%
|
(3)%
|
Health Care
|
8%
|
3%
|
(4)%
|
3%
|
4%
|
2%
|
13%
|
Fabric & Home Care
|
5%
|
5%
|
(4)%
|
4%
|
1%
|
(1)%
|
5%
|
Baby, Feminine & Family Care
|
1%
|
1%
|
(4)%
|
3%
|
1%
|
—%
|
1%
|
Total Company
|
3%
|
3%
|
(4)%
|
3%
|
2%
|
—%
|
4%
|
|
Twelve Months Ended June 30, 2019
|
|||||
|
Net Sales
|
% Change Versus Year Ago
|
Earnings/(Loss) from Continuing Operations Before Income Taxes
|
% Change Versus Year Ago
|
Net Earnings/(Loss) from Continuing Operations
|
% Change Versus Year Ago
|
Beauty
|
$12,897
|
4%
|
$3,282
|
8%
|
$2,637
|
14%
|
Grooming
|
6,199
|
(5)%
|
1,777
|
(1)%
|
1,529
|
7%
|
Health Care
|
8,218
|
5%
|
1,984
|
3%
|
1,519
|
18%
|
Fabric & Home Care
|
22,080
|
3%
|
4,601
|
10%
|
3,518
|
30%
|
Baby, Feminine & Family Care
|
17,806
|
(2)%
|
3,593
|
2%
|
2,734
|
21%
|
Corporate
|
484
|
(3)%
|
(9,168)
|
N/A
|
(7,971)
|
N/A
|
Total Company
|
$67,684
|
1%
|
$6,069
|
(54)%
|
$3,966
|
(60)%
|
|
Twelve Months Ended June 30, 2019
|
||||||
|
(Percent Change vs. Year Ago)
(1)
|
||||||
|
Volume with Acquisitions & Divestitures
|
Volume Excluding Acquisitions & Divestitures
|
Foreign Exchange
|
Price
|
Mix
|
Other
(2)
|
Net Sales Growth
|
Beauty
|
3%
|
2%
|
(4)%
|
2%
|
4%
|
(1)%
|
4%
|
Grooming
|
(1)%
|
(1)%
|
(5)%
|
2%
|
—%
|
(1)%
|
(5)%
|
Health Care
|
5%
|
4%
|
(3)%
|
1%
|
2%
|
—%
|
5%
|
Fabric & Home Care
|
4%
|
5%
|
(3)%
|
1%
|
1%
|
—%
|
3%
|
Baby, Feminine & Family Care
|
1%
|
1%
|
(4)%
|
1%
|
—%
|
—%
|
(2)%
|
Total Company
|
3%
|
2%
|
(4)%
|
2%
|
1%
|
(1)%
|
1%
|
(1)
|
Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
|
(2)
|
Other includes the sales mix impact from acquisitions and divestitures, the impact from the adoption of the new accounting standard for "Revenue from Contracts with Customers" in fiscal 2019 and rounding impacts necessary to reconcile volume to net sales.
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Statements of Cash Flows
|
|||||||
|
Twelve Months Ended June 30
|
||||||
|
2019
|
|
2018
|
||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR
|
$
|
2,569
|
|
|
$
|
5,569
|
|
OPERATING ACTIVITIES
|
|
|
|
||||
Net earnings
|
3,966
|
|
|
9,861
|
|
||
Depreciation and amortization
|
2,824
|
|
|
2,834
|
|
||
Loss on early extinguishment of debt
|
—
|
|
|
346
|
|
||
Share-based compensation expense
|
515
|
|
|
395
|
|
||
Deferred income taxes
|
(411
|
)
|
|
(1,844
|
)
|
||
Gain on sale of assets
|
(678
|
)
|
|
(176
|
)
|
||
Goodwill and indefinite-lived intangible impairment charges
|
8,345
|
|
|
—
|
|
||
Change in accounts receivable
|
(276
|
)
|
|
(177
|
)
|
||
Change in inventories
|
(239
|
)
|
|
(188
|
)
|
||
Change in accounts payable, accrued and other liabilities
|
1,856
|
|
|
1,385
|
|
||
Change in other operating assets and liabilities
|
(973
|
)
|
|
2,000
|
|
||
Other
|
313
|
|
|
431
|
|
||
TOTAL OPERATING ACTIVITIES
|
15,242
|
|
|
14,867
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(3,347
|
)
|
|
(3,717
|
)
|
||
Proceeds from asset sales
|
394
|
|
|
269
|
|
||
Acquisitions, net of cash acquired
|
(3,945
|
)
|
|
(109
|
)
|
||
Purchases of short-term investments
|
(158
|
)
|
|
(3,909
|
)
|
||
Proceeds from sales and maturities of short-term investments
|
3,628
|
|
|
3,928
|
|
||
Change in other investments
|
(62
|
)
|
|
27
|
|
||
TOTAL INVESTING ACTIVITIES
|
(3,490
|
)
|
|
(3,511
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Dividends to shareholders
|
(7,498
|
)
|
|
(7,310
|
)
|
||
Change in short-term debt
|
(2,215
|
)
|
|
(3,437
|
)
|
||
Additions to long-term debt
|
2,367
|
|
|
5,072
|
|
||
Reductions of long-term debt
(1)
|
(969
|
)
|
|
(2,873
|
)
|
||
Treasury stock purchases
|
(5,003
|
)
|
|
(7,004
|
)
|
||
Impact of stock options and other
|
3,324
|
|
|
1,177
|
|
||
TOTAL FINANCING ACTIVITIES
|
(9,994
|
)
|
|
(14,375
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
(88
|
)
|
|
19
|
|
||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
1,670
|
|
|
(3,000
|
)
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR
|
$
|
4,239
|
|
|
$
|
2,569
|
|
(1)
|
Includes costs related to early extinguishment of debt of $346 in 2018.
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Condensed Consolidated Balance Sheets
|
|||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||
Cash and cash equivalents
|
$
|
4,239
|
|
|
$
|
2,569
|
|
Available-for-sale investment securities
|
6,048
|
|
|
9,281
|
|
||
Accounts receivable
|
4,951
|
|
|
4,686
|
|
||
Inventories
|
5,017
|
|
|
4,738
|
|
||
Prepaid expenses and other current assets
|
2,218
|
|
|
2,046
|
|
||
TOTAL CURRENT ASSETS
|
22,473
|
|
|
23,320
|
|
||
PROPERTY, PLANT AND EQUIPMENT, NET
|
21,271
|
|
|
20,600
|
|
||
GOODWILL
|
40,273
|
|
|
45,175
|
|
||
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET
|
24,215
|
|
|
23,902
|
|
||
OTHER NONCURRENT ASSETS
|
6,863
|
|
|
5,313
|
|
||
TOTAL ASSETS
|
$
|
115,095
|
|
|
$
|
118,310
|
|
|
|
|
|
||||
Accounts payable
|
$
|
11,260
|
|
|
$
|
10,344
|
|
Accrued and other liabilities
|
9,054
|
|
|
7,470
|
|
||
Debt due within one year
|
9,697
|
|
|
10,423
|
|
||
TOTAL CURRENT LIABILITIES
|
30,011
|
|
|
28,237
|
|
||
LONG-TERM DEBT
|
20,395
|
|
|
20,863
|
|
||
DEFERRED INCOME TAXES
|
6,899
|
|
|
6,163
|
|
||
OTHER NONCURRENT LIABILITIES
|
10,211
|
|
|
10,164
|
|
||
TOTAL LIABILITIES
|
67,516
|
|
|
65,427
|
|
||
TOTAL SHAREHOLDERS' EQUITY
|
47,579
|
|
|
52,883
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
115,095
|
|
|
$
|
118,310
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures |
|||||||||||||||||
Three Months Ended June 30, 2019
|
|||||||||||||||||
|
AS REPORTED (GAAP)
|
|
ANTI-DILUTIVE IMPACTS
|
|
INCREMENTAL RESTRUCTURING
|
|
SHAVE CARE IMPAIRMENT
|
|
ROUNDING
|
|
NON-GAAP (CORE)
|
||||||
COST OF PRODUCTS SOLD
|
8,938
|
|
|
—
|
|
|
(192
|
)
|
|
—
|
|
|
—
|
|
|
8,746
|
|
GROSS PROFIT
|
8,156
|
|
|
—
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|
8,348
|
|
GROSS MARGIN
|
47.7
|
%
|
|
—
|
%
|
|
1.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
48.8
|
%
|
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE
|
5,003
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
4,998
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE AS A % OF NET SALES
|
29.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.1
|
)%
|
|
29.2
|
%
|
OPERATING INCOME
|
(5,192
|
)
|
|
—
|
|
|
197
|
|
|
8,345
|
|
|
—
|
|
|
3,350
|
|
OPERATING PROFIT MARGIN
|
(30.4
|
)%
|
|
—
|
%
|
|
1.1
|
%
|
|
48.8
|
%
|
|
0.1
|
%
|
|
19.6
|
%
|
NET EARNINGS ATTRIBUTABLE TO P&G
|
(5,241
|
)
|
|
—
|
|
|
164
|
|
|
7,978
|
|
|
—
|
|
|
2,901
|
|
|
|
|
|
|
|
|
|
|
|
|
Core EPS:
|
||||||
Diluted Net Earnings attributable to common shareholders
(1)
|
(5,308
|
)
|
|
67
|
|
|
164
|
|
|
7,978
|
|
|
—
|
|
|
2,901
|
|
Diluted Weighted Average Common Shares Outstanding
(1)
|
2,509.6
|
|
|
136.3
|
|
|
|
|
|
|
|
|
2,645.9
|
|
|||
DILUTED NET EARNINGS PER COMMON SHARE
|
(2.12
|
)
|
|
0.14
|
|
|
0.06
|
|
|
3.02
|
|
|
—
|
|
|
1.10
|
|
|
CURRENCY IMPACT TO CORE EARNINGS
|
|
|
0.08
|
|
||||||||||||
|
CURRENCY-NEUTRAL CORE EPS
|
|
|
1.18
|
|
||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
2,509.6
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COMMON STOCK OUTSTANDING AS OF JUNE 30, 2019
|
2,498.1
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE VERSUS YEAR AGO
|
|
|
|
|
|
CORE GROSS MARGIN
|
120
|
|
BPS
|
|
|
CORE SELLING GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES
|
(20
|
)
|
BPS
|
|
|
CORE OPERATING PROFIT MARGIN
|
130
|
|
BPS
|
|
|
CORE EPS
|
17
|
%
|
|
|
|
CURRENCY-NEUTRAL CORE EPS
|
26
|
%
|
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures |
|||||||||||||||||
Three Months Ended June 30, 2018
|
|||||||||||||||||
|
AS REPORTED (GAAP)
|
|
INCREMENTAL RESTRUCTURING
|
|
TRANSITIONAL IMPACTS OF THE U.S. TAX ACT
|
|
EARLY DEBT EXTINGUISHMENT
|
|
ROUNDING
|
|
NON-GAAP (CORE)
|
||||||
COST OF PRODUCTS SOLD
|
9,070
|
|
|
(428
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
8,641
|
|
GROSS PROFIT
|
7,433
|
|
|
428
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
7,862
|
|
GROSS MARGIN
|
45.0
|
%
|
|
2.6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
47.6
|
%
|
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE
|
4,846
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
4,845
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE AS A % OF NET SALES
|
29.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
29.4
|
%
|
OPERATING INCOME
|
2,587
|
|
|
431
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
3,017
|
|
OPERATING PROFIT MARGIN
|
15.7
|
%
|
|
2.6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
18.3
|
%
|
NET EARNINGS ATTRIBUTABLE TO P&G
|
1,891
|
|
|
368
|
|
|
(48
|
)
|
|
243
|
|
|
(1
|
)
|
|
2,453
|
|
|
|
|
|
|
|
|
|
|
|
|
Core EPS:
|
||||||
DILUTED NET EARNINGS PER COMMON SHARE*
|
0.72
|
|
|
0.14
|
|
|
(0.02
|
)
|
|
0.09
|
|
|
0.01
|
|
|
0.94
|
|
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
2,620.9
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble.
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures |
||||||||||||||||||||
Twelve Months Ended June 30, 2019
|
||||||||||||||||||||
|
AS REPORTED (GAAP)
|
|
ANTI-DILUTIVE IMPACTS
|
|
INCREMENTAL RESTRUCTURING
|
|
SHAVE CARE IMPAIRMENT
|
|
GAIN ON DISSOLUTION OF PGT PARTNERSHIP
|
|
ROUNDING
|
|
NON-GAAP (CORE)
|
|||||||
COST OF PRODUCTS SOLD
|
34,768
|
|
|
—
|
|
|
(426
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,342
|
|
GROSS PROFIT
|
32,916
|
|
|
—
|
|
|
426
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,342
|
|
GROSS MARGIN
|
48.6
|
%
|
|
—
|
%
|
|
0.6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
49.3
|
%
|
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE
|
19,084
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
19,106
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE AS A % OF NET SALES
|
28.2
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
28.2
|
%
|
OPERATING INCOME
|
5,487
|
|
|
—
|
|
|
403
|
|
|
8,345
|
|
|
—
|
|
|
1
|
|
|
14,236
|
|
OPERATING PROFIT MARGIN
|
8.1
|
%
|
|
—
|
%
|
|
0.6
|
%
|
|
12.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
21.0
|
%
|
NET EARNINGS ATTRIBUTABLE TO P&G
|
3,897
|
|
|
—
|
|
|
354
|
|
|
7,978
|
|
|
(353
|
)
|
|
1
|
|
|
11,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core EPS:
|
|||||||
Diluted Net Earnings attributable to common shareholders
(1)
|
3,634
|
|
|
263
|
|
|
354
|
|
|
7,978
|
|
|
(353
|
)
|
|
1
|
|
|
11,877
|
|
Diluted Weighted Average Common Shares Outstanding
(1)
|
2,539.5
|
|
|
90.2
|
|
|
|
|
|
|
|
|
|
|
2,629.7
|
|
||||
DILUTED NET EARNINGS PER COMMON SHARE
|
1.43
|
|
|
0.06
|
|
|
0.13
|
|
|
3.03
|
|
|
(0.13
|
)
|
|
—
|
|
|
4.52
|
|
|
CURRENCY IMPACT TO CORE EARNINGS
|
|
|
0.35
|
|
|||||||||||||||
|
CURRENCY-NEUTRAL CORE EPS
|
|
|
4.87
|
|
|||||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
2,539.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
COMMON STOCK OUTSTANDING AS OF JUNE 30, 2019
|
2,498.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE VERSUS YEAR AGO
|
|
|
|
|
|
CORE EPS
|
7
|
%
|
|
|
|
CURRENCY NEUTRAL CORE EPS
|
15
|
%
|
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures |
|||||||||||||||||
Twelve Months Ended June 30, 2018
|
|||||||||||||||||
|
AS REPORTED (GAAP)
|
|
INCREMENTAL RESTRUCTURING
|
|
TRANSITIONAL IMPACTS OF THE U.S. TAX ACT
|
|
EARLY DEBT EXTINGUISHMENT
|
|
ROUNDING
|
|
NON-GAAP (CORE)
|
||||||
COST OF PRODUCTS SOLD
|
34,432
|
|
|
(724
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
33,707
|
|
GROSS PROFIT
|
32,400
|
|
|
724
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
33,125
|
|
GROSS MARGIN
|
48.5
|
%
|
|
1.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
49.6
|
%
|
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE
|
19,037
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
19,037
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE AS A % OF NET SALES
|
28.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
28.5
|
%
|
OPERATING INCOME
|
13,363
|
|
|
725
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,088
|
|
OPERATING PROFIT MARGIN
|
20.0
|
%
|
|
1.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
21.1
|
%
|
NET EARNINGS ATTRIBUTABLE TO P&G
|
9,750
|
|
|
610
|
|
|
602
|
|
|
243
|
|
|
(1
|
)
|
|
11,204
|
|
|
|
|
|
|
|
|
|
|
|
|
Core EPS:
|
||||||
DILUTED NET EARNINGS PER COMMON SHARE*
|
3.67
|
|
|
0.23
|
|
|
0.23
|
|
|
0.09
|
|
|
—
|
|
|
4.22
|
|
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
2,656.7
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble.
|
April - June 2019
|
Net Sales Growth
|
|
Foreign Exchange Impact
|
|
Acquisition & Divestiture Impact/Other*
|
|
Organic Sales Growth
|
Beauty
|
3%
|
|
5%
|
|
—%
|
|
8%
|
Grooming
|
(3)%
|
|
6%
|
|
1%
|
|
4%
|
Health Care
|
13%
|
|
4%
|
|
(7)%
|
|
10%
|
Fabric & Home Care
|
5%
|
|
4%
|
|
1%
|
|
10%
|
Baby, Feminine & Family Care
|
1%
|
|
4%
|
|
—%
|
|
5%
|
Total Company
|
4%
|
|
4%
|
|
(1)%
|
|
7%
|
FY 2019
|
Net Sales Growth
|
|
Foreign Exchange Impact
|
|
Acquisition & Divestiture Impact/Other*
|
|
Organic Sales Growth
|
Total Company
|
1%
|
|
4%
|
|
—%
|
|
5%
|
Total Company
|
|
Net Sales Growth
|
|
Combined Foreign Exchange & Acquisition/Divestiture Impact*
|
|
Organic Sales Growth
|
FY 2020 (Estimate)
|
|
+3% to +4%
|
|
-%
|
|
+3% to +4%
|
Total Company
|
|
Diluted EPS Growth
|
|
Impact of Change in Non-Core Items*
|
|
Core EPS Growth
|
FY 2020 (Estimate)
|
|
+222% to +240%
|
|
(218%) to (231%)
|
|
+4% to +9%
|
*
|
Includes impact of gain on PGT Healthcare joint venture dissolution and Shave Care impairment in fiscal year 2019 and year over year changes in incremental non-core restructuring charges.
|
Three Months Ended June 30, 2019
|
||||
Operating Cash Flow
|
|
Capital Spending
|
|
Free Cash Flow
|
$4,151
|
|
$(814)
|
|
$3,337
|
Twelve Months Ended June 30, 2019
|
||||||
Operating Cash Flow
|
|
Capital Spending
|
|
U.S. Tax Act Payments
|
|
Adjusted Free Cash Flow
|
$15,242
|
|
$(3,347)
|
|
$235
|
|
$12,130
|
Three Months Ended June 30, 2019
|
||||||||
Net Earnings
|
|
Adjustment to Net Earnings
(1)
|
|
Adjusted Net Earnings
|
|
Free Cash Flow
|
|
Adjusted Free Cash Flow Productivity
|
$(5,237)
|
|
$7,978
|
|
$2,741
|
|
$3,337
|
|
122%
|
(1)
|
Adjustment to Net Earnings relates to the Shave Care impairment charge.
|
Twelve Months Ended June 30, 2019
|
||||||||
Net Earnings
|
|
Adjustments to Net Earnings
(1)
|
|
Adjusted Net Earnings
|
|
Adjusted Free Cash Flow
|
|
Adjusted Free Cash Flow Productivity
|
$3,966
|
|
$7,625
|
|
$11,591
|
|
$12,130
|
|
105%
|
(1)
|
Adjustments to Net Earnings relate to the gain on the dissolution of the PGT Healthcare joint venture and the Shave Care impairment charge.
|