P&G Delivers Strong Performance In FY 2024

The Procter & Gamble Company (P&G) has once again demonstrated its resilience and strength, posting impressive results for both the fourth quarter and the fiscal year 2024.

P&G's impressive fiscal year 2024 results highlight the company's strategic focus on innovation and brand superiority, driving robust organic sales growth and significant shareholder returns. | P&G Careers Facebook

Despite a challenging economic and geopolitical environment, P&G has not only met but exceeded its growth targets, signaling a robust future ahead.

For the fiscal year 2024, P&G reported net sales of $84.0 billion, marking a 2% increase from the previous year. Organic sales, which exclude the impacts of foreign exchange, acquisitions, and divestitures, surged by 4%.

This growth was primarily driven by higher pricing, which contributed significantly to the overall increase. Diluted earnings per share (EPS) rose by 2% to $6.02, while core EPS, which excludes certain items, jumped by an impressive 12% to $6.59.

In the fourth quarter, net sales held steady at $20.5 billion. Despite facing unfavorable foreign exchange impacts, P&G managed a 2% rise in organic sales.

However, diluted EPS for the quarter dipped by 7% to $1.27, primarily due to restructuring charges in certain markets. Nevertheless, core EPS increased by 2% to $1.40, reflecting the company's underlying strength.

Chairman, President, and CEO Jon Moeller lauded the team’s performance, emphasizing the company’s strategic focus on driving brand superiority, productivity, and agility. “Fiscal year 2024 was another year of strong results for P&G,” Moeller said.

“We remain committed to our integrated strategy aimed at delivering sustainable, balanced growth and value creation.”

P&G's operational prowess is also evident in its cash generation and shareholder returns. The company generated an operating cash flow of $19.8 billion and net earnings of $15.0 billion.

With a free cash flow productivity of 105%, P&G returned over $14 billion to shareholders through dividends and share repurchases. Notably, this marks the 68th consecutive year of dividend increases, showcasing P&G's unwavering commitment to its investors.

Segment-wise, P&G saw varied performance.

The Grooming segment shone with a 7% increase in organic sales, driven by innovation and pricing, particularly in Latin America. The Health Care segment also posted a 4% rise, bolstered by premium product mix and volume growth in key markets.

However, the Baby, Feminine, and Family Care segment faced challenges, with a 1% decline in organic sales.

Looking ahead, P&G is optimistic about fiscal year 2025, projecting all-in sales growth of 2-4% and organic sales growth of 3-5%. The company expects diluted EPS to grow by 10-12%, reflecting its confidence in continued strong performance.

With a strong portfolio of trusted brands and a strategic focus on innovation and productivity, P&G is poised for another year of exceptional growth.