Tissue360 Newsletter
Archive/Subscribe | TAPPI.org | Advertise | TAPPI Press Catalog May 2021

Procter & Gamble 3Q 2021 Results: Net Sales Up 5 percent From Year Ago to $18.1 billion

Print Print this Article | Send to Colleague

The Procter & Gamble Company reported third quarter fiscal year 2021 net sales of $18.1 billion, an increase of five percent versus the prior year. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased four percent.

Operating cash flow was $4.1 billion for the quarter. Free cash flow productivity was 106 percent. The Company returned $5 billion of cash to shareholders via $2 billion of dividend payments and $3 billion of common stock repurchases. Earlier this month, P&G announced a 10 percent increase in the quarterly dividend, marking the 65th consecutive year the Company has increased its dividend. P&G has been paying a dividend for 131 consecutive years since its incorporation in 1890.

“We delivered another quarter of solid top-line, bottom-line and cash results in what continues to be a challenging operating environment,” said David Taylor, chairman, president and chief executive officer. “We remain focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture. These strategies enabled us to build strong business momentum before the COVID crisis and accelerate our progress during the crisis, and they remain the right strategies to deliver balanced growth and value creation over the long term.”

January - March Quarter Discussion
Net sales in the third quarter of fiscal year 2021 were $18.1 billion, a five percent increase versus the prior year. Favorable foreign exchange increased net sales for the quarter by one percentage point. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased four percent, driven by two percentage points of increased pricing and two percentage points of positive mix impact. Positive mix was driven by the disproportionate growth of the higher-priced Home Care, Oral Care and Appliances categories and the North America and Greater China regions. Shipment volumes were unchanged versus the prior year.

Reported gross margin increased 130 basis points versus the prior year reported gross margin. Reported gross margin increased 30 basis points versus the prior year core gross margin due to 100 basis points of non-core restructuring charges in the base period. Unfavorable foreign exchange negatively impacted gross margin by 50 basis points. On a currency-neutral basis, reported gross margin increased 80 basis points versus the prior year core gross margin driven by 120 basis points of productivity savings and 80 basis points of benefit from increased pricing, partially offset by 30 basis points negative impact from higher commodity costs and 90 basis points of unfavorable product mix, product reinvestments and other costs. Productivity savings included approximately 80 basis points of headwinds from freight cost increases.

Operating profit margin increased 80 basis points versus the base period reported operating margin. Operating profit margin was unchanged versus the base period core operating margin due to approximately 80 basis points of non-core restructuring charges in the base period. Unfavorable foreign exchange negatively impacted operating margins by 30 basis points. On a currency-neutral basis, reported operating margin increased 30 basis points versus the prior year core operating margin, including total productivity cost savings of 210 basis points for the quarter.

 

Back to Tissue360 Newsletter

 
American Roller and Plasma Coatings
Köerber Tissue
Industrial Shredders Ltd