Summary
The Procter & Gamble Company (PG) filed its 10-K for the fiscal year ended June 30, 2024, reporting net sales of $84.0 billion, a 2% increase year-over-year, driven by a 4% increase in organic sales. Net earnings grew 2% to $15.0 billion, 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 billion related to the Gillette brand, which impacted reported earnings but was excluded from core EPS.
Financial Highlights
57 data points| Revenue | $84.04B |
| Cost of Revenue | $40.85B |
| Gross Profit | $43.19B |
| R&D Expenses | $2.00B |
| SG&A Expenses | $23.30B |
| Operating Income | $18.55B |
| Net Income | $14.88B |
| EPS (Basic) | $6.18 |
| EPS (Diluted) | $6.02 |
| Shares Outstanding (Basic) | 2.36B |
| Shares Outstanding (Diluted) | 2.47B |
Key Highlights
- 1Net sales reached $84.0 billion, up 2% year-over-year, with organic sales growing 4%, indicating underlying business strength.
- 2Net 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.
- 3Operating 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.
- 4The 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.
- 5A $1.3 billion non-cash impairment charge was recorded against the Gillette indefinite-lived intangible asset, impacting reported earnings but not core EPS.
- 6P&G is actively managing market portfolio restructuring in challenging macroeconomic environments, including recent actions in Argentina and Nigeria.
- 7The company continues to invest in innovation and productivity, aiming for sustained growth across its diverse consumer goods portfolio.