Summary
The Procter & Gamble Company's (PG) 2018 10-K filing reveals a company focused on its core consumer packaged goods portfolio, with a net sales increase of 3% to $66.8 billion. This growth was driven by a combination of a 2% increase in unit volume and a 2% positive foreign exchange impact, partially offset by a 1% decline in pricing. Organic sales grew by 1% due to a 2% increase in organic volume. Despite a 3% decrease in net earnings from continuing operations, largely attributed to the transitional impacts of the U.S. Tax Cuts and Jobs Act, the company demonstrated strong operational performance. Core Earnings Per Share (EPS) saw a healthy increase of 8% to $4.22, indicating effective cost management and underlying business strength. P&G also returned significant value to shareholders through $7.0 billion in share repurchases and $7.3 billion in dividends, underscoring a commitment to shareholder returns. The company continues to streamline its portfolio, with strategic acquisitions and divestitures aimed at strengthening its market positions in attractive categories.
Financial Highlights
58 data points| Revenue | $66.83B |
| Cost of Revenue | $34.43B |
| Gross Profit | $32.40B |
| R&D Expenses | $1.90B |
| SG&A Expenses | $19.04B |
| Operating Income | $13.36B |
| Interest Expense | $506.00M |
| Net Income | $9.75B |
| EPS (Basic) | $3.75 |
| EPS (Diluted) | $3.67 |
| Shares Outstanding (Basic) | 2.53B |
| Shares Outstanding (Diluted) | 2.66B |
Key Highlights
- 1Net sales increased by 3% to $66.8 billion, driven by volume growth and favorable foreign exchange.
- 2Organic sales grew by 1% due to a 2% increase in organic volume, demonstrating underlying brand strength.
- 3Core EPS increased by 8% to $4.22, highlighting effective cost management and operational efficiency.
- 4The company repurchased $7.0 billion of its stock and paid $7.3 billion in dividends, demonstrating a strong commitment to shareholder returns.
- 5Net earnings from continuing operations decreased by 3%, primarily due to the impact of the U.S. Tax Cuts and Jobs Act.
- 6P&G completed strategic portfolio actions, including the agreement to acquire Merck KGaA's consumer health business and the dissolution of the PGT Healthcare partnership.
- 7The company maintains leadership positions across its five reportable segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.