The Procter & Gamble Company (NYSE:PG) reported fiscal year 2020 net sales of $71 billion, an increase of five percent versus the prior year. Procter & Gamble reports Q4 Core EPS of $1.16 versus the consensus estimate of $1.01. The company reports Q4 revenue of $17.7B versus the consensus estimate of $16.97B.
Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased six percent, driven by a four percent increase in organic volume. Diluted net earnings per share were $4.96, an increase of 247% versus the prior year, due primarily to the non-cash impairment charge for the Gillette Shave Care business in the base year. Core earnings per share increased 13% to $5.12. The Company generated $17.4 billion of operating cash flow in fiscal 2020 with adjusted free cash flow productivity of 114%. The Company returned $15.2 billion of value to shareholders in fiscal 2020 through $7.8 billion in dividend payments and $7.4 billion of share repurchases.
The Company reported fourth quarter fiscal year 2020 net sales of $17.7 billion, an increase of four percent versus the prior year. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased six percent, driven by a three percent increase in organic volume. Diluted net earnings per share were $1.07, an increase of $3.19 versus the prior year, due primarily to the impairment charge for the Gillette Shave Care business in the base year. Core earnings per share increased five percent to $1.16. Operating cash flow was $4.8 billion for the quarter. Adjusted free cash flow productivity was 161%.
“We are prioritizing employee health and safety, maximizing availability of P&G products, which play an essential role in meeting the daily health, hygiene and cleaning needs of consumers around the world, and helping society meet the challenges of the COVID crisis. We expect to grow through this crisis and come out even stronger on the other side,” said David Taylor, Chairman, President and Chief Executive Officer. “We delivered strong, balanced sales and profit results in fiscal 2020, both pre-COVID and through the balance of the year, meeting or exceeding each of our going-in targets, demonstrating the commitment and agility of P&G people and the robustness of our strategy.”
On July 27, 2020, Jefferies analyst Kevin Grundy raised the firm’s price target on Procter & Gamble to $148 from $140 and kept a Buy rating on the shares. Grundy has raised his estimates for P&G to reflect strength in the U.S. and China as well as recent weakness in the U.S. dollar.
Jon Moeller, Procter & Gamble COO and CFO, joins “Squawk Box” to discuss the company’s fourth quarter earnings results.