01—Abstract
Summary
Summary of the 10-K filed August 5, 2024. Cited figures are marked; the original filing is the authoritative source.
The Procter & Gamble Company (PG) filed its 10-K for the fiscal year ended June 30, 2024, reporting net sales of $84.0 billiona, a 2% increase year-over-year, driven by a 4% increase in organic sales.
Net earnings grew 2% to $15.0 billionb, while core earnings per share (EPS) saw a more robust 12% increase to $6.59, benefiting from the exclusion of significant one-time charges, including a $1.3 billion impairment charge related to the Gillette intangible asset and incremental restructuring costs. The company demonstrated strong cash flow generation, with operating cash flow increasing 18% to $19.8 billion and adjusted free cash flow up 21% to $16.9 billion. P&G continues to return value to shareholders, with its share repurchase program completing its target for fiscal year 2024.
The company also highlighted its consistent dividend payments, with 134 consecutive years of payments and 68 consecutive annual increases. Key risks highlighted include macroeconomic volatility, foreign currency fluctuations, supply chain disruptions, and competitive pressures.
The company is actively managing these risks through productivity improvements, innovation, and strategic portfolio adjustments, such as the recent limited market portfolio restructuring in Argentina and Nigeria. P&G also disclosed an intangible asset impairment charge of $1.3 billionc related to the Gillette brand, which impacted reported earnings but was excluded from core EPS.
02—Key points
Key Highlights
- Net sales reached $84.0 billion, up 2% year-over-year, with organic sales growing 4%, indicating underlying business strength.
- Net earnings rose to $15.0 billion, a 2% increase, while core EPS surged 12% to $6.59, reflecting strong operational performance excluding one-time charges.
- Operating cash flow strengthened by 18% to $19.8 billion, and adjusted free cash flow increased by 21% to $16.9 billion, demonstrating robust cash generation capabilities.
- The company executed a significant share repurchase program, returning $5 billion to shareholders in fiscal year 2024, and maintained its long history of consistent dividend payments and increases.
- A $1.3 billion non-cash impairment charge was recorded against the Gillette indefinite-lived intangible asset, impacting reported earnings but not core EPS.
- P&G is actively managing market portfolio restructuring in challenging macroeconomic environments, including recent actions in Argentina and Nigeria.
- The company continues to invest in innovation and productivity, aiming for sustained growth across its diverse consumer goods portfolio.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Procter & Gamble Co kept $0.18.
- Revenue$84.04B100.0%
- Cost of revenue−$40.85B48.6%
- Gross profit$43.19B51.4%
- Operating costs−$24.65B29.3%
- Operating income$18.55B22.1%
- Interest, other & tax−$3.67B4.4%
- Net income$14.88B17.7%
Where FY2024 revenue went
$84.04B- Cost of revenue: $40.85B, 49% of revenue
- SG&A: $23.30B, 28% of revenue
- Net income: $14.88B, 18% of revenue
- R&D: $2.00B, 2.4% of revenue
- Interest, other & tax: $3.67B, 4.4% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed August 5, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $84.04B$82.01B | +2.5% |
| Cost of Revenue | $40.85B$42.76B | −4.5% |
| Gross Profit | $43.19B$39.25B | +10.1% |
| R&D Expenses | $2.00B$2.00B | 0.0% |
| SG&A Expenses | $23.30B$21.11B | +10.4% |
| Operating Income | $18.55B$18.13B | +2.3% |
| Net Income | $14.88B$14.65B | +1.5% |
| EPS (Basic) | $6.18$6.07 | +1.8% |
| EPS (Diluted) | $6.02$5.90 | +2.0% |
| Shares Outstanding (Basic) | 2.36B2.37B | −0.3% |
| Shares Outstanding (Diluted) | 2.47B2.48B | −0.5% |
05—Questions
Frequently Asked Questions
What was the financial performance of Procter & Gamble for fiscal year 2024?
For the fiscal year ended June 30, 2024, Procter & Gamble reported net sales of $84.0 billion, a 2% increase from the prior year, with organic sales growing by 4%. Net earnings were $15.0 billion, up 2%, and diluted EPS was $6.02. Core EPS, which excludes certain charges, increased by 12% to $6.59, reflecting operational improvements.
What were the significant charges or impairments mentioned in the filing?
The company recorded a significant $1.3 billion (pre-tax) non-cash impairment charge on the Gillette indefinite-lived intangible asset. Additionally, P&G announced and began executing a limited market portfolio restructuring in challenging macroeconomic regions like Argentina and Nigeria, which is expected to incur approximately $1.0 to $1.5 billion in after-tax charges.
How is P&G returning value to shareholders?
P&G has a strong track record of returning value to shareholders. In fiscal year 2024, the company completed its share repurchase program, returning $5 billion to shareholders. It also boasts 134 consecutive years of dividend payments and 68 consecutive years of dividend increases, demonstrating a consistent commitment to shareholder returns.
What are the key risks P&G faces according to the filing?
The company identifies several key risks including macroeconomic volatility (global economic slowdowns, inflation, geopolitical tensions), foreign currency fluctuations due to its significant international operations, supply chain disruptions (including those from natural disasters or geopolitical events), competitive pressures in the consumer goods market, and risks associated with cybersecurity and regulatory changes. The company is actively managing these through various strategies including productivity improvements and portfolio adjustments.
06—Continue