Today P&G reported results that represent a good start to the fiscal year.
- Net Sales +5%; Organic Sales +4%;
- Diluted EPS and Core EPS $1.61, each -1%
- Maintained our guidance for the fiscal year for organic sales growth, core EPS growth, free cash flow productivity and cash return to shareowners.
During the quarter we grew markets and drove strong cash generation. Organic sales grew 4% for the quarter. Growth was broad-based as nine of our 10 product categories grew organic sales. E-commerce organic sales were up 16% for the quarter. Market share grew globally, across many of our categories and country combinations. And while we experienced the full impact of rising commodity and transportation costs this quarter, healthy top-line growth and strong cost savings helped keep earnings per share nearly in line with prior year.
“We delivered solid results in our first quarter of fiscal 2022 in a challenging cost and operating environment. These results keep us on track to deliver our top-line, bottom-line and cash targets for the fiscal year. We remain focused on executing our strategies of superiority, productivity, constructive disruption and continually improving P&G’s organization structure and culture. These strategies enabled us to build strong momentum before the COVID crisis and accelerate progress as we navigate through the crisis, and they remain the right strategies to deliver balanced growth and value creation,” said David Taylor, Chairman, President and Chief Executive Officer.
Core earnings per share were $1.61, down 1% vs. the prior year. On a currency neutral basis, core EPS declined 3%, mainly due to higher input costs. During the quarter, we returned nearly $5 billion dollars of value to shareowners – $2.2 billion in dividends and nearly $2.8 billion in share repurchase.
We remain focused on the three priorities that have been guiding our near-term actions and choices.
- First, working to ensure the health and safety of our P&G colleagues around the world.
- Second, maximizing the availability of products that help people and their families with their health, hygiene and cleaning needs.
- Third, supporting the communities, relief agencies and people who are on the frontlines of this global pandemic.
Serving each of these three priorities are our strategic choices:
- A portfolio of daily use products, many providing health, hygiene and cleaning benefits in categories where performance plays a significant role in brand choice.
- Superior, science-based products delivered with superior packaging, retail execution, consumer communication and value…in all price tiers where we compete.
- Cost and cash productivity...up and down the income statement and across the balance sheet…to fund investments in superiority, manage macro headwinds and build profit margin.
- A mindset of constructive disruption. A willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. In this environment, that agility and constructive disruption mindset are even more important.
- A more empowered, agile and accountable organization with little overlap or redundancy, flowing to new demands, seamlessly supporting each other to deliver our priorities - around the world.
See www.pginvestor.com/event for P&G's full Q1 earnings release issued October 19, 2021, the associated webcast presentation, definitions of non-GAAP measures and reconciliation to the most closely related GAAP measure, as well as cautionary information on forward-looking statements, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.