Summary
Procter & Gamble Co. reported solid results for the nine months ended March 31, 2010, demonstrating resilience in a challenging economic environment. Net sales saw a 2% increase to $60.0 billion, driven by a 3% rise in unit volume, indicating sustained consumer demand for its essential consumer goods. The company's strategic focus on core brands and product innovation appears to be paying off, with organic sales growing by 3%. While net earnings from continuing operations rose 5% to $8.8 billion, overall net earnings saw a 4% decrease to $10.6 billion, largely due to lower gains from discontinued operations compared to the prior year, primarily from the divestiture of the pharmaceuticals business. Diluted Earnings Per Share (EPS) from continuing operations saw a healthy 7% increase to $2.82, while Core EPS, which excludes certain charges, grew 10% to $2.96, highlighting the underlying strength of the core business. The company also generated substantial operating cash flow of $12.8 billion and free cash flow of $10.8 billion, underscoring its robust financial health and ability to return value to shareholders.
Financial Highlights
50 data points| Revenue | $19.18B |
| Cost of Revenue | $9.22B |
| Gross Profit | $9.95B |
| SG&A Expenses | $5.99B |
| Operating Income | $3.97B |
| Interest Expense | $223.00M |
| Net Income | $2.58B |
| EPS (Basic) | $0.88 |
| EPS (Diluted) | $0.83 |
| Shares Outstanding (Diluted) | 3.10B |
Key Highlights
- 1Net sales increased 2% to $60.0 billion for the nine months ended March 31, 2010, supported by a 3% increase in unit volume.
- 2Net earnings from continuing operations rose 5% to $8.8 billion, driven by sales growth and margin expansion.
- 3Diluted EPS from continuing operations grew 7% to $2.82, and Core EPS increased 10% to $2.96.
- 4Operating cash flow increased significantly by 29% to $12.8 billion for the nine-month period.
- 5Free cash flow was strong at $10.8 billion for the nine-month period, with productivity at 102% of net earnings.
- 6The company continues to manage its portfolio, with the divestiture of the global pharmaceuticals business completed in October 2009.
- 7Despite an increase in SG&A expenses as a percentage of net sales due to marketing investments and other operating expenses, gross margins saw improvement driven by cost savings and lower commodity costs.