Summary
Procter & Gamble (PG) for the fiscal year ending June 30, 2012, reported net sales of $83.7 billion, a 3% increase year-over-year, driven by price increases that offset a slight decline in unit volume. The company experienced a significant 20% decrease in net earnings from continuing operations to $9.3 billion, largely due to $1.6 billion in goodwill and intangible asset impairment charges related to the Appliances and Salon Professional businesses, and $721 million in restructuring charges from a new productivity plan. Despite these charges, P&G demonstrated strong cash flow generation with $9.3 billion in free cash flow. The company continued its commitment to shareholders by increasing its dividend for the 56th consecutive year and repurchasing $4.0 billion in shares. The company is strategically focusing on its top 40 core businesses, top 20 innovations, and top 10 developing markets to drive future growth. A significant cost-saving initiative of $10 billion over five years was announced, aimed at streamlining operations and improving productivity. P&G's diverse product portfolio, with key segments including Fabric Care & Home Care, Baby Care & Family Care, Beauty, Health Care, and Grooming, positions it well in competitive global markets, though it faces challenges from commodity cost fluctuations and macroeconomic uncertainties.
Financial Highlights
56 data points| Revenue | $82.01B |
| Cost of Revenue | $41.41B |
| Gross Profit | $40.59B |
| R&D Expenses | $2.00B |
| SG&A Expenses | $25.98B |
| Operating Income | $13.04B |
| Interest Expense | $769.00M |
| Net Income | $10.76B |
| EPS (Basic) | $3.82 |
| EPS (Diluted) | $3.66 |
| Shares Outstanding (Basic) | 2.75B |
| Shares Outstanding (Diluted) | 2.94B |
Key Highlights
- 1Net sales increased by 3% to $83.7 billion, with organic sales also growing by 3%, primarily due to price increases.
- 2Net earnings attributable to Procter & Gamble decreased by 9% to $10.8 billion, reflecting significant impairment and restructuring charges.
- 3Diluted Earnings Per Share (EPS) decreased by 7% to $3.66, with continuing operations EPS down 19% to $3.12.
- 4The company generated strong free cash flow of $9.3 billion, with a free cash flow productivity of 85%.
- 5P&G announced a $10 billion productivity and cost savings plan over five years, targeting overhead reduction and efficiency improvements.
- 6The company completed the divestiture of its snacks business, contributing $1.4 billion in after-tax gain to discontinued operations.
- 7P&G raised its dividend for the 56th consecutive year, paying a total of $6.1 billion in dividends to shareholders.