Summary
Procter & Gamble (PG) reported its third quarter and nine-month results for fiscal year 2009, ending March 31, 2009. For the quarter, net sales decreased by 8% to $18.4 billion, impacted by an 8% unfavorable foreign exchange rate and a 5% decline in unit volume. Despite lower sales, diluted earnings per share (EPS) from continuing operations increased by 4% to $0.83, driven by a lower effective tax rate and cost-saving measures. The company also reported a gain from discontinued operations, primarily related to the divestiture of its coffee business. For the nine-month period, net sales saw a slight decrease of 1% to $60.4 billion, though organic sales grew by 3%. Net earnings significantly increased by 21% to $11.0 billion, largely due to a substantial gain from the divestiture of the Folgers coffee business. Diluted EPS for the nine months rose 27% to $3.46. The company continued its share repurchase program and dividend payments, reflecting a commitment to shareholder returns amidst a challenging global economic environment. Management noted ongoing efforts to manage costs and adapt to market conditions, including currency fluctuations and a broader economic downturn.
Financial Highlights
28 data points| Revenue | $17.86B |
| Cost of Revenue | $9.12B |
| Gross Profit | $8.75B |
| SG&A Expenses | $5.19B |
| Operating Income | $3.55B |
| Interest Expense | $337.00M |
| Net Income | $2.61B |
| EPS (Basic) | $0.88 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Diluted) | 3.10B |
Key Highlights
- 1Net sales for the third quarter decreased by 8% to $18.4 billion, primarily due to a 5% drop in unit volume and a significant 8% negative impact from foreign exchange rates.
- 2Diluted net earnings per share (EPS) from continuing operations increased by 4% to $0.83 for the quarter, despite lower sales, aided by a lower effective tax rate and cost management.
- 3For the nine months ended March 31, 2009, net sales decreased by 1% to $60.4 billion, but organic sales grew by 3%.
- 4Total net earnings for the nine-month period surged by 21% to $11.0 billion, significantly boosted by a $2.0 billion after-tax gain from the divestiture of the Folgers coffee business.
- 5Diluted EPS for the nine-month period increased by 27% to $3.46, reflecting the impact of the Folgers divestiture gain and ongoing share repurchases.
- 6Operating cash flow for the nine months was $9.9 billion, a decrease of 11% compared to the prior year, with free cash flow productivity at 71%.
- 7The company is subject to ongoing investigations into potential competition law violations in Europe, the outcome of which could materially impact future financial results.