The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

P&G Delivers Third Quarter Core EPS of $0.99, Organic Sales Up 3%

<p class='bwalignc'> <span class='bwuline'><i>Operating Earnings, EPS and Cash Flow Ahead of Plan,</i></span> </p> <p class='bwalignc'> <span class='bwuline'><i>Results Fuel Increases in Dividend Rate and Share Repurchase Target</i></span> </p>

Wednesday, April 24, 2013

P&G Delivers Third Quarter Core EPS of $0.99, Organic Sales Up 3%

07:00 EDT Wednesday, April 24, 2013

CINCINNATI (Business Wire) -- The Procter & Gamble Company (NYSE:PG) increased core earnings per share by five percent to $0.99 for the January – March quarter. Diluted net earnings per share were $0.88, an increase of seven percent. Non-core items include restructuring charges of $0.03 per share and a $0.08 per share charge from the balance sheet revaluation resulting from the devaluation of the Venezuelan currency in February.

Organic sales grew three percent. Net sales were $20.6 billion, an increase of two percent versus the prior year period including a negative one percent impact from foreign exchange.

P&G held or grew market share in businesses representing over 50 percent of sales in the January - March quarter, as measured on a constant currency value basis. In the U.S. market, P&G held or grew value share in businesses representing two-thirds of sales.

“We delivered another quarter of steady progress,” said Chairman, President, and Chief Executive Officer, Bob McDonald. “Top-line growth was in line with our expectations. Market shares improved broadly. Strong cost savings enabled us to exceed our outlook on the bottom line. We increased our dividend earlier this month, and we are now projecting to repurchase $6 billion in stock, which is at the high end of our estimated range. We expect further top-line improvement in the fourth quarter, driven by innovation and portfolio expansion, enabled by continued productivity improvement.”

Executive Summary

  • Organic sales increased three percent for the quarter.
  • Core net earnings per share increased five percent to $0.99.
  • Core operating profit margin increased 10 basis points, including 260 basis points of productivity improvements and cost savings.
  • Core gross margin increased 20 basis points. Reported gross margin, including non-core restructuring charges, increased 50 basis points.
  • Core selling, general and administrative expenses (SG&A) as a percentage of net sales increased 10 basis points. Reported SG&A costs, including non-core items, increased 40 basis points as a percentage of sales.
  • Operating cash flow was $3.9 billion for the quarter.
  • The Company repurchased $1.0 billion of shares during the quarter and returned $1.6 billion of cash to shareholders as dividends.
  • Earlier this month, P&G announced it increased the quarterly dividend by seven percent.
  • The Company raised its share repurchase target to approximately $6 billion of stock for the fiscal year, the high end of its stated target range of $5 billion to $6 billion.

January – March Quarter Discussion

Net sales increased two percent to $20.6 billion in the January – March quarter, including unfavorable foreign exchange of one percent. Organic sales grew three percent on a unit volume increase of two percent and positive pricing of one percent.

Diluted net earnings per share were $0.88, an increase of seven percent versus the prior year period. Excluding non-core charges of $0.11 per share in the current year, core earnings per share were $0.99, an increase of five percent versus the prior year period.

Core gross margin increased 20 basis points. Manufacturing and productivity savings improved gross margin by approximately 170 basis points with higher pricing providing a 50 basis point improvement. These were partially offset by the impact of unfavorable geographic and product mix and innovation and new production capacity start-up costs. Reported gross margin, including non-core restructuring charges increased 50 basis points. Core SG&A costs increased 10 basis points. Overhead cost savings of approximately 90 basis points was more than offset by higher marketing spending. Including restructuring costs and non-core impacts from the Venezuelan devaluation, reported SG&A increased 40 basis points.

Reported operating profit increased three percent. Core operating profit, excluding non-core charges, increased two percent driven by the higher gross margin, overhead productivity savings, and a lower core tax rate, partially offset by an increase in marketing spending. The core tax rate was 22.2%, a decrease of about one percentage point versus the prior year and consistent with the Company's guidance for the quarter. The reduction was primarily due to the fiscal year to date impact of the U.S. corporate tax law changes made in early January.

Fiscal Year 2013 Guidance

P&G is maintaining its organic sales growth guidance of three percent to four percent for the fiscal year. Foreign exchange is expected to reduce sales growth by two percent, resulting in guidance for all-in net sales growth of one percent to two percent versus the prior year. The Company is increasing the low end of the range of core earnings per share guidance for the year by $0.02 to $3.96 to $4.04, up three percent to up five percent versus prior year core EPS of $3.85, behind strong productivity improvement and resulting cost savings. All-in earnings per share are expected to be in the range of $3.90 to $3.98, equating to growth of seven percent to nine percent versus prior year EPS of $3.66.

April – June 2013 Quarter Guidance

P&G is estimating organic sales growth in the range of three percent to four percent for the April – June quarter. Foreign exchange is expected to decrease net sales growth by two percent, resulting in net sales growth of one percent to two percent versus the prior year period.

The Company expects June quarter core EPS in the range of $0.69 to $0.77. On an all-in basis, P&G is forecasting diluted net earnings per share in the range of $0.67 to $0.75. The all-in EPS guidance includes non-core restructuring charges of $0.02 per share.

Business Segment Discussion

Beauty Segment

    Foreign                 Net               Organic     Organic               BT     AT
Volume Exchange Price Mix Other Sales Volume Sales Earnings Earnings
-1% -1% 1% -1% 0% -2% -1% -1% -3% 2%

Net sales decreased in Hair Care and Skin Care in a period of heavy competitive product and promotional activity. Organic sales increased in Salon Professional driven by strong innovation performance, partially offset by market contraction. Beauty segment net earnings growth was driven by higher pricing, manufacturing savings and a lower effective tax rate.

Grooming Segment

    Foreign                 Net               Organic     Organic               BT     AT
Volume Exchange Price Mix Other Sales Volume Sales Earnings Earnings
-2% -1% 3% -1% -1% -2% 0% 2% 12% 12%

Blades and razors net sales increased versus the prior year driven primarily by innovation in the U.S. and pricing and product mix improvement in developing regions. Net sales in Appliances decreased due to market contraction, competitive activity and customer inventory adjustments. All-in sales for the segment decreased due to the divestiture of the household appliances business and negative foreign exchange. Grooming segment net earnings increased due to higher pricing and overhead productivity savings, partially offset by an increase in marketing spending.

Health Care Segment

    Foreign                 Net               Organic     Organic               BT     AT
Volume Exchange Price Mix Other Sales Volume Sales Earnings Earnings
5% -1% 1% 2% 1% 8% 5% 8% 15% 20%

Oral Care net sales grew in developed and developing markets due to innovation and portfolio expansion. Feminine Care net sales growth was driven by market growth and innovation in developing regions, partially offset by market softness and competitive activity in North America and Western Europe. Personal Health Care delivered strong sales growth driven by new innovation, market expansion and underlying market growth due to a stronger cold and flu season versus the prior year. The significant increase in segment net earnings was driven by strong sales growth and overhead productivity savings, partially offset by higher marketing spending.

Fabric Care and Home Care Segment

    Foreign                 Net               Organic     Organic               BT     AT
Volume Exchange Price Mix Other Sales Volume Sales Earnings Earnings
3% -1% 0% -2% 0% 0% 3% 1% -6% -3%

Fabric Care organic sales growth was driven by strong innovations in all regions, including Tide PODS in North America. Disproportionate growth in developing regions resulted in negative geographic sales mix. Fabric Care net sales were in line with the prior year due to negative foreign exchange. Home Care delivered higher net sales due to product innovation, value interventions and geographic expansion. Batteries net sales decreased primarily due to customer inventory reductions following Hurricane Sandy and unfavorable product mix, partially offset by growth in developing regions due to market expansion. Fabric Care and Home Care segment net earnings decreased due to an increase in marketing spending.

Baby Care and Family Care Segment

    Foreign                 Net               Organic     Organic               BT     AT
Volume Exchange Price Mix Other Sales Volume Sales Earnings Earnings
2% -1% 2% 0% 0% 3% 2% 4% 4% 6%

Baby Care net sales increased driven by innovation and underlying market growth. Family Care net sales increased behind new innovation and promotional spending efficiency. Baby Care and Family Care segment net earnings growth was driven by the increase in net sales and pricing-driven gross margin expansion.

               
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Selected Financial Information
 
GAAP CORE (NON-GAAP)*
Three Months Ended March 31 Three Months Ended March 31
2013 2012 % Change 2013 2012 % Change
COST OF PRODUCTS SOLD 10,344 10,237 1% 10,294 10,133 2%
 
GROSS PROFIT 10,254 9,957 3% 10,304 10,061 2%
 
SELLING, GENERAL & ADMINISTRATIVE EXPENSE 6,849 6,636 3% 6,435 6,278 3%
 
OPERATING INCOME 3,405 3,299 3% 3,869 3,783 2%
 
DILUTED NET EPS FROM CONTINUING OPERATIONS $0.88 $0.81 9% $0.99 $0.94 5%
 
Basis Pt Basis Pt

COMPARISONS AS A % OF NET SALES

Chg Chg
GROSS MARGIN 49.8 % 49.3 % 50 50.0 % 49.8 % 20
SELLING, GENERAL & ADMINISTRATIVE EXPENSE 33.3 % 32.9 % 40 31.2 % 31.1 % 10
OPERATING MARGIN 16.5 % 16.3 % 20 18.8 % 18.7 % 10
 
 

CASH FLOW (NINE MONTHS ENDED MARCH 31) - SOURCE/(USE)

`
OPERATING CASH FLOW 10,481 9,311
FREE CASH FLOW 8,055 6,648
DIVIDENDS

(4,797

)

(4,521

)

SHARE REPURCHASE

(4,985

)

(4,023

)

*Core excludes incremental restructuring charges, balance sheet impact of Venezuela devaluation, and impairment charges.

Forward-Looking Statements

Certain statements in this release or presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue”, “will likely results,” and similar expressions. Forward-looking statements are based on current expectation and assumptions that are subject to risks and uncertainties which may cause results to differ materially from the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.

Risks and uncertainties to which our forward-looking statements are subject include: (1) the ability to achieve business plans, including growing existing sales and volume profitably and maintaining and improving margins and market share, despite high levels of competitive activity, an increasingly volatile economic environment, lower than expected market growth rates, especially with respect to the product categories and geographical markets (including developing markets) in which the Company has chosen to focus, and/or increasing competition from mid- and lower tier value products in both developed and developing markets; (2) the ability to successfully manage ongoing acquisition, divestiture and joint venture activities to achieve the cost and growth synergies in accordance with the stated goals of these transactions without impacting the delivery of base business objectives; (3) the ability to successfully manage ongoing organizational changes and achieve productivity improvements designed to support our growth strategies, while successfully identifying, developing and retaining particularly key employees, especially in key growth markets where the availability of skilled or experienced employees may be limited; (4) the ability to manage and maintain key customer relationships; (5) the ability to maintain key manufacturing and supply sources (including sole supplier and plant manufacturing sources); (6) the ability to successfully manage regulatory, tax and legal requirements and matters (including, but not limited to, product liability, patent, intellectual property, price controls, import restrictions, environmental and tax policy), and to resolve pending matters within current estimates; (7) the ability to resolve the pending competition law inquiries in Europe within current estimates; (8) the ability to successfully implement, achieve and sustain cost improvement plans and efficiencies in manufacturing and overhead areas, including the Company's outsourcing projects; (9) the ability to successfully manage volatility in foreign exchange rates, as well as our debt and currency exposure (especially in certain countries with currency exchange, import authorization or pricing controls, such as Venezuela, China, India and Argentina); (10) the ability to maintain our current credit rating and to manage fluctuations in interest rate, increases in pension and healthcare expense, and any significant credit or liquidity issues; (11) the ability to manage continued global political and/or economic uncertainty and disruptions, especially in the Company's significant geographical markets, due to a wide variety of factors, including but not limited to, terrorist and other hostile activities, natural disasters and/or disruptions to credit markets, resulting from a global, regional or national credit crisis; (12) the ability to successfully manage competitive factors, including prices, promotional incentives and trade terms for products; (13) the ability to obtain patents and respond to technological advances attained by competitors and patents granted to competitors; (14) the ability to successfully manage increases in the prices of commodities, raw materials and energy, including the ability to offset these increases through pricing actions; (15) the ability to develop effective sales, advertising and marketing programs; (16) the ability to stay on the leading edge of innovation, maintain the positive reputation of our brands and ensure trademark protection; and (17) the ability to rely on and maintain key information technology systems and networks (including Company and third-party systems and networks), the security over such systems and networks, and the data contained therein. For additional information concerning factors that could cause actual results to materially differ from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.

About Procter & Gamble

P&G serves approximately 4.6 billion people around the world with its brands. The Company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Mach3®, Bounty®, Dawn®, Fairy®, Gain®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Oral-B®, Duracell®, Olay®, Head & Shoulders®, Wella®, Gillette®, Braun®, Fusion®, Ace®, Febreze®, Ambi Pur®, SK-II®, and Vicks®. The P&G community includes operations in approximately 75 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.

# # #

The Procter & Gamble Company

Exhibit 1: Non-GAAP Measures

In accordance with the SEC's Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure.

Organic Sales Growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions, divestitures and foreign exchange from year-over-year comparisons. We believe this provides investors with a more complete understanding of underlying sales trends by providing sales growth on a consistent basis. Organic sales is also one of the measures used to evaluate senior management and is a factor in determining their at-risk compensation.

The reconciliation of reported sales growth to organic sales is as follows:

  Net     Foreign     Acquisition/     Organic
Sales Exchange Divestiture Sales
JFM 2013 Growth Impact Impact* Growth
Beauty -2% 1% 0% -1%
Grooming -2% 1% 3% 2%
Health Care 8% 1% -1% 8%
Fabric Care and Home Care 0% 1% 0% 1%
Baby Care and Family Care   3%     1%     0%     4%
Total P&G   2%     1%     0%     3%
 
 
Net Foreign Acquisition/ Organic
Sales Exchange Divestiture Sales

Total P&G

Growth   Impact Impact* Growth
AMJ 2013 (Estimate) 1% to 2% 2% 0% 3% to 4%
FY 2013 (Estimate) 1% to 2% 2% 0% 3% to 4%

*Acquisition/Divestiture Impact includes rounding impacts necessary to reconcile net sales to organic sales.

Core EPS: This is a measure of the Company's diluted net earnings per share from continuing operations excluding charges in both years for incremental restructuring due to increased focus on productivity and cost savings, the current year charge from the balance sheet impact of the Venezuela devaluation, charges in the prior year related to the European legal matters, the current year holding gain on the buyout of our Iberian joint venture partner, and prior year impairment charges for goodwill and indefinite lived intangible assets. We do not view these items to be part of our sustainable results. We believe the Core EPS measure provides an important perspective of underlying business trends and results and provides a more comparable measure of year-on-year earnings per share growth. Core EPS is also one of the measures used to evaluate senior management and is a factor in determining their at-risk compensation. The table below provides a reconciliation of diluted net earnings per share to Core EPS:

    JFM 13       JFM 12
Diluted Net Earnings Per Share $0.88 $0.82
Snacks results of operations – Discontinued Operations

-

$(0.01)
Diluted Net Earnings Per Share-Continuing Operations $0.88 $0.81
Venezuela balance sheet devaluation impacts $0.08

-

Impairment charges - $0.01
Incremental restructuring $0.03 $0.12
Core EPS $0.99 $0.94
Core EPS Growth 5%
 
 

AMJ 13 (est.) AMJ 12
Diluted Net Earnings Per Share $0.67 to $0.75 $1.24
Gain from snacks divestiture ($0.48)
Snacks results of operations – Discontinued Operations - (0.02)
Diluted Net Earnings Per Share-Continuing Operations $0.67 to $0.75 $0.74
Incremental restructuring 0.02 0.08
Core EPS $0.69 to $0.77 $0.82
Core EPS Growth -16% to -6%
 
 

 

FY 2013 (est.) FY 2012
Diluted Net Earnings Per Share $3.90 to $3.98 $3.66
Gain from snacks divestiture - (0.48)
Snacks results of operations – Discontinued Operations - (0.06)
Diluted Net EPS–Continuing Operations $3.90 to $3.98 $3.12
Venezuela balance sheet devaluation impacts $0.08 -
Impairment charges - $0.51
Incremental restructuring $0.19 $0.20
Charges for European legal matters - $0.03
Gain on buyout of Iberian JV ($0.21) -
Rounding/other impacts - ($0.01)
Core EPS $3.96 to $4.04 $3.85
Core EPS Growth 3% to 5%

Note – All reconciling items are presented net of tax. Tax effects are calculated consistent with the nature of the underlying transaction.

Core Operating Profit Growth/Core Operating Profit Margin: This is a measure of the Company's operating profit growth and operating profit margin adjusted for the current and prior year charges related to incremental restructuring due to increased focus on productivity and cost savings, the current year charge from the balance sheet impact of the Venezuela devaluation, and prior year impairment charges for goodwill and indefinite lived intangible assets:

      JFM 13        
Operating Profit Growth 3%
Venezuela balance sheet devaluation impacts 10%
Incremental restructuring -10%
Impairment charges -1%
Core Operating Profit Growth 2%
 
 
JFM 13 JFM 12
Operating Profit Margin 16.5% 16.3%
Venezuela balance sheet devaluation impacts 1.7%

-

Incremental restructuring 0.6% 2.4%
Core Operating Profit Margin 18.8% 18.7%
Basis point change 10
 

Core Gross Margin: This is a measure of the Company's gross margin adjusted for the current year charges related to incremental restructuring due to increased focus on productivity and cost savings:

        JFM 13         JFM 12
Gross Margin 49.8% 49.3%
Incremental restructuring 0.2% 0.5%
Core Gross Margin 50.0% 49.8%
Basis point change 20
 

Core SG&A as a % of Net Sales: This is a measure of the Company's SG&A as a % of net sales adjusted for the current and prior year charges related to incremental restructuring due to increased focus on productivity and cost savings and the current year charge from the balance sheet impact of the Venezuela devaluation:

        JFM 13         JFM 12
SG&A as a % NOS 33.3% 32.9%
Incremental restructuring -0.3% -1.7%
Venezuela balance sheet devaluation impacts -1.7% -
Rounding -0.1% -0.1%
Core SG&A as a % NOS 31.2% 31.1%
Basis point change 10
 

Free Cash Flow: Free cash flow is defined as operating cash flow less capital spending. We view free cash flow as an important measure because it is one factor in determining the amount of cash available for dividends and discretionary investment. Free cash flow is also one of the measures used to evaluate senior management and is a factor in determining their at-risk compensation. The reconciliation of free cash flow is provided below (amounts in millions):

     

Operating

            Free Cash
       

Cash Flow

      Capital Spending       Flow
Jul ‘12-Mar ‘13 $10,481 ($2,426) $8,055
Jul ‘11-Mar ‘12       $9,311       ($2,663)       $6,648
 

Core Effective Tax Rate: This is a measure of the Company's effective tax rate adjusted for the current year charge from the balance sheet impact of the Venezuela devaluation and the current year charges related to incremental restructuring due to increased focus on productivity and cost savings. The table below provides a reconciliation of the effective tax rate to the Core tax rate:

      JFM
2013
Effective Tax Rate 21.2%
Tax impact of Venezuela balance sheet devaluation impacts 1.1%
Incremental restructuring -0.1%
Core Effective Tax Rate 22.2%
 
           
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
                     
Three Months Ended March 31   Nine Months Ended March 31
 
2013 2012 % CHG 2013 2012 % CHG
NET SALES $ 20,598 $ 20,194 2 % $ 63,512 $ 63,468 0 %
COST OF PRODUCTS SOLD   10,344   10,237 1 %   31,574   31,894 (1)%
GROSS PROFIT 10,254 9,957 3 % 31,938 31,574 1 %
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE 6,849 6,636 3 % 20,090 19,769 2 %
GOODWILL AND INTANGIBLES IMPAIRMENT CHARGES   -   22 (100)%   -   1,576 (100)%
OPERATING INCOME 3,405 3,299 3 % 11,848 10,229 16 %
INTEREST EXPENSE 163 179 (9)% 504 587 (14)%
OTHER NON-OPERATING INCOME/(EXPENSE), NET   46   67 (31)%   988   238 315 %
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 3,288 3,187 3 % 12,332 9,880 25 %
INCOME TAXES ON CONTINUING OPERATIONS 697 754 (8)% 2,812 2,776 1 %
 
NET EARNINGS FROM CONTINUING OPERATIONS   2,591   2,433 6 %   9,520   7,104 34 %
 
DISCONTINUED OPERATIONS:
INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX - 56 (100)% - 199 (100)%
INCOME TAXES ON DISCONTINUED OPERATIONS   -   22 (100)%   -   66 (100)%
NET EARNINGS FROM DISCONTINUED OPERATIONS   -   34 (100)%   -   133 (100)%
 
NET EARNINGS 2,591 2,467 5 % 9,520 7,237 32 %
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS   25   56 (55)%   83   112 (26)%
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE   2,566   2,411 6 %   9,437   7,125 32 %
 
EFFECTIVE TAX RATE 21.2 % 23.7 % 22.8 % 28.1 %
 
 
BASIC NET EARNINGS PER COMMON SHARE:
EARNINGS FROM CONTINUING OPERATIONS $ 0.92 $ 0.84 10 % $ 3.38 $ 2.47 37 %
EARNINGS FROM DISCONTINUED OPERATIONS $ - $ 0.01 (100)% $ - $ 0.05 (100)%
BASIC NET EARNINGS PER COMMON SHARE $ 0.92 $ 0.85 8 % $ 3.38 $ 2.52 34 %
 
DILUTED NET EARNINGS PER COMMON SHARE:
EARNINGS FROM CONTINUING OPERATIONS $ 0.88 $ 0.81 9 % $ 3.22 $ 2.37 36 %
EARNINGS FROM DISCONTINUED OPERATIONS $ - $ 0.01 (100)% $ - $ 0.05 (100)%

DILUTED NET EARNINGS PER COMMON SHARE

$ 0.88 $ 0.82 7 % $ 3.22 $ 2.42 33 %
 
DIVIDENDS $ 0.562 $ 0.525 7 % $ 1.686 $ 1.575 7 %
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 2,930.7 2,937.8 2,927.6 2,944.9
 
 

COMPARISONS AS A % OF NET SALES

Basis Pt Chg Basis Pt Chg
GROSS MARGIN 49.8 % 49.3 % 50 50.3 % 49.7 % 60
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE 33.3 % 32.9 % 40 31.6 % 31.1 % 50
GOODWILL AND INTANGIBLES IMPAIRMENT CHARGES 0.0 % 0.1 %

(10

)

0.0 % 2.5 %

(250

)

OPERATING MARGIN 16.5 % 16.3 % 20 18.7 % 16.1 % 260
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16.0 % 15.8 % 20 19.4 % 15.6 % 380
NET EARNINGS FROM CONTINUING OPERATIONS 12.6 % 12.0 % 60 15.0 % 11.2 % 380
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE 12.5 % 11.9 % 60 14.9 % 11.2 % 370
 
               

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

(Amounts in Millions)

Consolidated Earnings Information
       

 

                       
Three Months Ended March 31, 2013
% Change Earnings from % Change Net Earnings % Change
Versus Continuing Operations Versus From Continuing Versus
Net Sales     Year Ago     Before Income Taxes     Year Ago    

Operations

    Year Ago
Beauty $ 4,763 -2% $ 692 -3% $ 535 2%
Grooming 1,931 -2% 593 12% 444 12%
Health Care 3,274 8% 731 15% 493 20%
Fabric Care and Home Care 6,587 0% 1,087 -6% 693 -3%
Baby Care and Family Care 4,277 3% 939 4% 608 6%
Corporate

(234

)

  N/A    

(754

)

  N/A    

(182

)

  N/A
Total Company 20,598 2% 3,288 3% 2,591 6%
 
                                   
Three Months Ended March 31, 2013
(Percent Change vs. Year Ago)*
Volume Volume
With Without
Acquisitions/ Acquisitions/ Foreign Net Sales
Divestitures     Divestitures     Exchange     Price     Mix     Other   Growth
Beauty -1% -1% -1% 1% -1% 0% -2%
Grooming -2% 0% -1% 3% -1% -1% -2%
Health Care 5% 5% -1% 1% 2% 1% 8%
Fabric Care and Home Care 3% 3% -1% 0% -2% 0% 0%
Baby Care and Family Care 2%     2%     -1%     2%     0%     0%   3%
Total Company 2% 2% -1% 1% 0% 0% 2%
 
                               
Nine Months Ended March 31, 2013
% Change Earnings from % Change Net Earnings % Change
Versus Continuing Operations Versus From Continuing Versus
Net Sales     Year Ago     Before Income Taxes     Year Ago     Operations     Year Ago
Beauty $ 15,106 -3% $ 2,682 1% $ 2,070 3%
Grooming 6,057 -4% 1,922 3% 1,428 2%
Health Care 9,714 2% 2,222 0% 1,512 1%
Fabric Care and Home Care 20,711 0% 3,836 5% 2,502 10%
Baby Care and Family Care 12,598 2% 2,693 7% 1,731 9%
Corporate

(674

)

  N/A    

(1,023

)

  N/A     277     N/A
Total Company 63,512 0% 12,332 25% 9,520 34%
 
                                   
Nine Months Ended March 31, 2013
(Percent Change vs. Year Ago)*
Volume Volume
With Without
Acquisitions/ Acquisitions/ Foreign Net Sales
Divestitures     Divestitures     Exchange     Price     Mix     Other   Growth
Beauty -2% -1% -2% 2% -1% 0% -3%
Grooming -2% 0% -4% 2% 0% 0% -4%
Health Care 3% 2% -3% 2% 1% -1% 2%
Fabric Care and Home Care 2% 2% -2% 1% -1% 0% 0%
Baby Care and Family Care 3%     3%     -2%     2%     -1%     0%   2%
Total Company 1% 1% -2% 2% -1% 0% 0%
 
         
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Nine Months Ended March 31
2013 2012
 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 4,436 $ 2,768
 
OPERATING ACTIVITIES
NET EARNINGS 9,520 7,237
DEPRECIATION AND AMORTIZATION 2,188 2,427
SHARE BASED COMPENSATION EXPENSE 250 277
DEFERRED INCOME TAXES 75 (5 )
GAIN ON PURCHASE/SALE OF BUSINESSES (906 ) (201 )
GOODWILL AND INDEFINITE LIVED INTANGIBLES IMPAIRMENT CHARGES - 1,576
CHANGES IN:
ACCOUNTS RECEIVABLE (504 ) (347 )
INVENTORIES (492 ) (287 )
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES (84 ) (1,558 )
OTHER OPERATING ASSETS & LIABILITIES 483 131
OTHER   (49 )   61  
 
TOTAL OPERATING ACTIVITIES   10,481     9,311  
 
INVESTING ACTIVITIES
CAPITAL EXPENDITURES (2,426 ) (2,663 )
PROCEEDS FROM ASSET SALES 559 290
ACQUISITIONS, NET OF CASH ACQUIRED (1,148 ) (4 )
PURCHASES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES (1,504 ) -
CHANGE IN INVESTMENTS   (156 )   90  
 
TOTAL INVESTING ACTIVITIES   (4,675 )   (2,287 )
 
FINANCING ACTIVITIES
DIVIDENDS TO SHAREHOLDERS (4,797 ) (4,521 )
CHANGE IN SHORT-TERM DEBT 4,152 (122 )
ADDITIONS TO LONG-TERM DEBT 2,253 3,985
REDUCTIONS OF LONG-TERM DEBT (3,749 ) (2,514 )
TREASURY STOCK PURCHASES (4,985 ) (4,023 )
IMPACT OF STOCK OPTIONS AND OTHER   2,730     1,439  
 
TOTAL FINANCING ACTIVITIES   (4,396 )   (5,756 )
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   30     (45 )
 
CHANGE IN CASH AND CASH EQUIVALENTS   1,440     1,223  
 
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,876   $ 3,991  
 
           
The Procter & Gamble Company and Subsidiaries
(Amounts in Millions)
Condensed Consolidated Balance Sheets
 
March 31, 2013 June 30, 2012
 
CASH AND CASH EQUIVALENTS $ 5,876 $ 4,436
ACCOUNTS RECEIVABLE 6,669 6,068
TOTAL INVENTORIES 7,240 6,721
OTHER   4,513   4,685
TOTAL CURRENT ASSETS 24,298 21,910
 
NET PROPERTY, PLANT AND EQUIPMENT 21,191 20,377
NET GOODWILL AND OTHER INTANGIBLE ASSETS 86,806 84,761
OTHER NON-CURRENT ASSETS   6,836   5,196
TOTAL ASSETS $ 139,131 $ 132,244
 
 
ACCOUNTS PAYABLE $ 7,422 $ 7,920
ACCRUED AND OTHER LIABILITIES 8,892 8,289
DEBT DUE WITHIN ONE YEAR   11,098   8,698
TOTAL CURRENT LIABILITIES 27,412 24,907
 
LONG-TERM DEBT 21,125 21,080
OTHER   22,641   22,222
TOTAL LIABILITIES   71,178   68,209
   
TOTAL SHAREHOLDERS' EQUITY   67,953   64,035
   
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 139,131 $ 132,244

P&G Media Contacts :
Paul Fox, 513-983-3465
Jennifer Chelune, 513-983-2570
or
P&G Investor Relations Contact :
John Chevalier, 513-983-9974

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections