Procter & Gamble (PG) Reports 11% Increase in Earnings

The Procter & Gamble Company (NYSE:PG) has reported its third quarter fiscal year 2024 net sales at $20.2 billion, marking a one percent increase compared to the previous year. Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, grew three percent.

The diluted net earnings per share saw a significant increase of 11% to $1.52, while core earnings per share also rose by 11% to $1.52. Operating cash flow for the quarter was reported at $4.1 billion, with net earnings totaling $3.8 billion.

The company returned $3.3 billion of cash to shareholders through approximately $2.3 billion in dividend payments and $1 billion in share repurchases. Notably, this marks the 68th consecutive year that P&G has increased its dividend and the 134th consecutive year that P&G has paid a dividend since its incorporation in 1890.

Breaking down the performance by segment, the Beauty segment witnessed a three percent increase in organic sales, driven by higher pricing. The Grooming segment saw a significant organic sales increase of ten percent, primarily due to higher pricing in Latin America and Europe. Health Care, Fabric & Home Care, and Baby, Feminine & Family Care segments also reported various increases in organic sales, demonstrating a strong performance across the board.

Looking ahead, P&G has maintained its guidance range for fiscal 2024 all-in sales growth to be in the range of two to four percent versus the prior year. The company also maintained its outlook for organic sales growth in the range of four to five percent.

The fiscal year 2024 diluted net earnings per share growth has been raised from a range of -1% to inline to a range of one to two percent versus fiscal 2023 EPS of $5.90. Additionally, the company has raised its fiscal 2024 core net earnings per share growth from a range of eight to nine percent to a range of 10% to 11% versus fiscal 2023 EPS.

P&G now expects a core effective tax rate of 20% to 21% in fiscal 2024, with capital spending estimated to be approximately 4% of fiscal 2024 net sales. The company continues to anticipate adjusted free cash flow productivity of 90% and expects to pay more than $9 billion in dividends and repurchase $5 to $6 billion of common shares in fiscal 2024. The market has reacted to these announcements by moving the company's shares -0.7% to a price of $156.25. For more information, read the company's full 8-K submission here.

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