The Procter & Gamble Company (PG) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered strong results, meeting or exceeding guidance for organic sales, core EPS, cash productivity, and shareholder returns despite significant market headwinds.

• Organic sales grew 4% for the year, with broad-based growth across most categories and geographies, except for softness in Greater China and select enterprise markets.

• Core EPS rose 12% to $6.59, with currency-neutral core EPS up 16%.

• Over $14 billion was returned to shareholders via $9.3 billion in dividends and $5 billion in share repurchases; 68th consecutive annual dividend increase.

• Value share increased in 30 of the top 50 category/country combinations.

Financial highlights

• Organic sales growth of 4% year-over-year, marking the sixth consecutive year at or above this level; net sales growth 2%.

• Core EPS up 12% to $6.59; on a currency-neutral basis, up 16%.

• Core gross margin improved 360 basis points to 51.4%; core operating margin up 170 basis points.

• Adjusted free cash flow productivity reached 105% for the year and 148% in Q4.

• Dividend per share for fiscal 2024 was $3.83, up 4% year-over-year.

Outlook and guidance

• Fiscal 2025 guidance: organic sales growth of 3%-5%, net sales growth 2%-4%, and core EPS growth of 5%-7% (range: $6.91–$7.05 per share); all-in EPS growth projected at 10%-12%.

• Guidance includes $300 million commodity and $200 million FX headwinds, totaling a $0.20 per share drag on EPS.

• Adjusted free cash flow productivity expected at 90%; capital spending at 4–5% of sales; $16–$17 billion planned cash return to shareholders.

• Plans to pay ~$10 billion in dividends and repurchase $6–$7 billion in shares in fiscal 2025.

• First half of fiscal 2025 expected to remain challenging, with improvement anticipated in the second half as headwinds annualize.