Summary
The Procter & Gamble Company (PG) 10-K filing for the fiscal year ended June 30, 2013, highlights a period of modest net sales growth driven by volume increases and price adjustments, alongside a significant boost in net earnings from continuing operations. This improvement in profitability was largely attributable to favorable acquisition/divestiture impacts and a reduction in impairment charges compared to the prior year. The company continues to focus on its core, profitable brands and markets, emphasizing innovation and productivity to drive future growth. Despite facing a competitive landscape and global economic uncertainties, P&G demonstrated strong free cash flow generation and maintained a robust dividend payout, underscoring its commitment to shareholder returns. Key financial metrics showed net sales reaching $84.2 billion, a 1% increase, with organic sales growing by 3%. Diluted earnings per share from continuing operations saw a substantial rise of 24% to $3.86, while reported diluted EPS increased by 5% to $3.86. The company successfully managed its costs, with gross margin expanding by 30 basis points. Significant divestitures, including the snacks business, were completed in the prior year, impacting year-over-year comparisons. P&G also initiated a productivity and cost savings plan, aiming for over $2 billion in annual savings over five years.
Financial Highlights
57 data points| Revenue | $80.12B |
| Cost of Revenue | $39.99B |
| Gross Profit | $40.13B |
| R&D Expenses | $1.90B |
| SG&A Expenses | $26.00B |
| Operating Income | $13.82B |
| Interest Expense | $667.00M |
| Net Income | $11.31B |
| EPS (Basic) | $4.04 |
| EPS (Diluted) | $3.86 |
| Shares Outstanding (Basic) | 2.74B |
| Shares Outstanding (Diluted) | 2.93B |
Key Highlights
- 1Net sales increased by 1% to $84.2 billion, with organic sales growth of 3%.
- 2Diluted net earnings per share from continuing operations increased by 24% to $3.86.
- 3Free cash flow generation was strong at $10.9 billion, with a productivity of 95%.
- 4The company continued its commitment to shareholders by increasing its dividend for the 57th consecutive year.
- 5A significant productivity and cost savings plan was in place, aiming for over $2 billion in annual savings.
- 6Impairment charges were significantly lower than the prior year, contributing to the net earnings improvement.
- 7The company's largest customer, Wal-Mart, accounted for 14% of net sales.