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, marking the sixth consecutive year of 4%+ growth, with broad-based gains 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%.

• E-commerce sales rose 9%, now 18% of total sales; value share increased in 30 of the top 50 category/country combinations.

• Over $14 billion was returned to shareholders via dividends and share repurchases, with the 68th consecutive annual dividend increase.

Financial highlights

• Core EPS for the year was $6.59, up 12%; on a currency-neutral basis, up 16%.

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

• Adjusted free cash flow productivity reached 105% for the year; Q4 at 148%.

• Fourth quarter organic sales grew 2%, with volume up 2% and pricing up 1%; core EPS for Q4 was $1.40, up 2% year-over-year.

• Fiscal 2024 net sales rose 2% to $84.0B; net earnings were $15.0B, up 2% 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).

• Diluted EPS growth projected at 10–12%; currency-neutral core EPS growth projected at 6%–8%.

• Expect $300 million after-tax commodity cost headwind and $200 million FX headwind, totaling a $0.20 per share drag on core EPS.

• Plan to return $16–$17 billion to shareholders via dividends and share repurchases; capital spending at 4–5% of sales.

• Guidance assumes annualization of current headwinds in China, Middle East, and Argentina, with potential upside if conditions improve.