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Dec 31, 2020
Procter & Gamble Q2 2021 Earnings Report
Procter & Gamble reported strong Q2 2021 results with growth across key measures.
Key Takeaways
Procter & Gamble's Q2 2021 net sales increased by 8% to $19.7 billion, with organic sales also up by 8%. Diluted net EPS rose by 4% to $1.47, while core EPS increased by 15% to $1.64. The company raised its sales, earnings, adjusted free cash flow productivity and cash return guidance.
Net sales increased by 8% compared to the prior year.
Organic sales also increased by 8%, driven by volume, pricing, and mix.
Diluted net earnings per share increased by 4% versus the prior year.
Core EPS increased by 15% versus the prior year.
Procter & Gamble
Procter & Gamble
Procter & Gamble Revenue by Segment
Revenue by Segment
Beauty Revenue
CapyFin.comGrooming Revenue
CapyFin.comHealth Care Revenue
CapyFin.comFabric & Home Care Revenue
CapyFin.comBaby, Feminine & Family Care Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
P&G raised its outlook for fiscal year 2021 all-in sales growth to a range of 5% to 6% and organic sales growth to a range of 5% to 6%. The company expects GAAP diluted net earnings per share growth in the range of 8% to 10% and core earnings per share growth in the range of 8% to 10%.
Positive Outlook
- All-in sales growth is expected to be in the range of 5% to 6%.
- Organic sales growth is expected to be in the range of 5% to 6%.
- GAAP diluted net earnings per share growth is expected to be in the range of 8% to 10%.
- Core earnings per share growth is expected to be in the range of 8% to 10%.
- The Company expects to pay approximately $8 billion in dividends in fiscal 2021.
Challenges Ahead
- The outlook includes headwinds of approximately $100 million after-tax from foreign exchange impacts.
- The outlook includes headwinds of approximately $100 million after-tax from higher freight costs.
- The outlook also includes an estimated $150 million after tax headwind for the combined impacts of higher interest expense and lower interest income.
- Commodity cost impact is now expected to be neutral versus the previous fiscal year.
- GAAP EPS guidance includes non-core charges for early debt retirement of $0.16 per share in fiscal 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income