NYSE$PG

Procter & Gamble Co · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Procter & Gamble's Q3 2021 results reflected solid top-line, bottom-line, and cash performance amidst a challenging operating environment.

Procter & Gamble reported a 5% increase in net sales to $18.1 billion for Q3 2021. Organic sales grew by 4%. Diluted net earnings per share increased by 13% to $1.26. The company returned $5 billion to shareholders through dividends and stock repurchases and maintained sales and earnings guidance while raising the outlook for adjusted free cash flow productivity and cash return.

  • Net sales increased by 5% compared to the prior year, reaching $18.1 billion.
  • Organic sales grew by 4%, driven by increased pricing and positive mix impact.
  • Diluted net earnings per share rose by 13% to $1.26.
  • The company returned $5 billion to shareholders through dividends and stock repurchases.

Headline financials

Total Revenue

$18.1B

Previous: $17.2B+5.2%
EPS (adj)

$1.26

Previous: $1.17+7.7%
Organic Sales Growth

4.0%

No prior period
Capital Expenditures

-$2.07B

Previous: -$2.42B+14.2%
Free Cash Flow

$1.2B

Previous: $542M+120.7%
Net Income

$3.27B

Previous: $2.96B+10.6%
Operating Income

$3.79B

Previous: $3.45B+9.6%
Gross Profit

$9.19B

Previous: $8.5B+8.1%
Cash & Equivalents

$8.5B

Previous: $14.2B-40.0%
Total Assets

$117B

Previous: $119B-1.5%
Stock-Based Comp

$144M

Previous: $123M+17.1%

Revenue & EPS history

Procter & Gamble · Revenue · Quarterly

$18.1B

Q3 2021+5.2%vs Q3 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Procter & Gamble · $18.1B total across 6 segments · Q3 2021

  • Fabric & Home Care
    $6.28B+8.0%
  • Baby, Feminine & Family Care
    $4.6B-0.0%
  • Beauty
    $3.32B+9.0%
  • Health Care
    $2.36B+4.4%
  • Grooming
    $1.44B+3.6%
  • Corporate
    $120M

Forward guidance

P&G maintained its outlook for fiscal 2021 all-in and organic sales growth in the range of five to six percent versus the prior fiscal year. P&G maintained guidance for core earnings per share growth in the range of eight to ten percent versus fiscal 2020 core EPS of $5.12.

Tailwinds

  • Fiscal 2021 all-in sales growth in the range of 5-6%.
  • Fiscal 2021 organic sales growth in the range of 5-6%.
  • Fiscal 2021 GAAP diluted net earnings per share growth in the range of 8-10%.
  • Fiscal 2021 core earnings per share growth in the range of 8-10%.
  • Fiscal 2021 adjusted free cash flow productivity to be over 100%.

Headwinds

  • Headwinds of approximately $150 million after-tax from foreign exchange impacts.
  • More than $200 million after-tax from higher freight costs.
  • A headwind from commodity costs of approximately $125 million after-tax.
  • Price increases on Baby Care, Feminine Care and Adult Incontinence product categories in the United States to offset a portion of the impact of rising commodity costs.
  • The exact amount of the price increase will vary by brand and sub-brand in the range of mid-to-high single digit percentages and will go into effect in mid-September.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.4%

Avg return

30 days after

60%

43 / 72 earnings

Positive

+7.9%

Q1 2019

Best reaction

-7.2%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.8%+0.5%-0.8%
Q2 2026+2.7%+1.6%+10.1%
Q1 2026-0.5%-2.3%-0.8%
Q3 2025-3.7%-2.1%+0.1%
Q2 2025+2.7%+4.9%+5.3%
Q1 2025-1.6%-1.6%-1.6%
Q4 2024-5.4%+0.1%+0.1%
Q3 2024+2.1%+3.4%+6.6%
Q2 2024+2.9%+5.6%+8.6%
Q1 2024+1.4%+1.3%+3.3%
Q4 2023+2.8%+2.9%+0.9%
Q3 2023+3.6%+2.5%+1.5%
Q2 2023-2.3%-3.1%-4.4%
Q1 2023-1.1%+0.8%+11.1%
Q4 2022-3.5%-2.1%-3.9%
Q3 2022+2.0%+2.0%-11.1%
Q2 2022+3.4%+2.9%+2.0%
Q1 2022-0.8%-1.1%+3.4%
Q4 2021+1.7%+2.1%+2.0%
Q3 2021+0.2%-2.0%+1.0%
Q2 2021-1.9%-1.0%-4.9%
Q1 2021+0.9%+0.3%-1.7%
Q4 2020+2.2%+4.3%+8.2%
Q3 2020-0.7%-1.7%-5.7%
Q2 2020-0.9%-0.2%+0.3%
Q1 2020+3.3%+3.5%+1.1%
Q4 2019+1.8%+0.4%+4.5%
Q3 2019-2.2%-0.1%+0.7%
Q2 2019+4.3%+3.4%+10.8%
Q1 2019+7.9%+11.5%+16.9%
Q4 2018+0.6%+2.7%+4.0%
Q3 2018-5.6%-7.3%-6.1%
Q2 2018-3.9%-4.5%-12.0%
Q1 2018-4.7%-5.2%-3.5%
Q4 2017+1.0%+2.0%+3.6%
Q3 2017-2.6%-3.2%-3.1%
Q2 2017+2.7%+2.9%+7.5%
Q1 2017+3.9%+3.3%-1.7%
Q4 2016-0.5%-0.7%+2.2%
Q3 2016-1.9%
Q2 2016+2.5%
Q1 2016+3.5%
Q4 2015-4.9%
Q3 2015-2.5%
Q2 2015-4.9%
Q1 2015+3.3%
Q4 2014+2.5%
Q3 2014-0.1%
Q2 2014+0.3%
Q1 2014+0.9%
Q4 2013+1.2%
Q3 2013-7.2%
Q2 2013+4.8%
Q1 2013+2.0%
Q4 2012+3.6%
Q3 2012-4.8%
Q2 2012-2.5%
Q1 2012-0.3%
Q4 2011+0.4%
Q3 2011+1.1%
Q2 2011-1.6%
Q1 2011-0.1%
Q4 2010-0.4%
Q3 2009+0.8%
Q3 2010+0.8%
Q4 2008+0.5%
Q4 2007+0.5%
Q2 2010+1.2%
Q2 2009+1.2%
Q1 2009+1.3%
Q1 2010+1.3%
Q4 2009+1.3%

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