April 17, 2020
P&G External Business Partners:
We value your partnership during these difficult times, and we appreciate your support to continue to produce products that make a big difference in people’s lives.
As per our commitment to share our best practices and information, this is to provide you with updated Global and Regional developments related to COVID-19. We hope this content can assist you in developing the business strategies behind every one of your operations.
Despite immense challenges, today, P&G reported third quarter fiscal year 2020 net sales of $17.2 billion, an increase of five percent versus the prior year. Excluding the net impacts of foreign exchange, acquisitions and divestitures, organic sales increased six percent. Diluted net earnings per share were $1.12, an eight percent increase versus the prior year. Core earnings per share increased 10% to $1.17. Currency-neutral core EPS increased 15% versus the prior year.
Operating cash flow was $4.1 billion for the quarter. Free cash flow productivity was 113%. The Company returned $2.8 billion of cash to shareholders through $1.9 billion in dividend payments and $900 million of common stock repurchases in the third quarter. Over the last 10 years, P&G has returned over $120 billion to shareholders in cash dividends and stock repurchase. Earlier this week, P&G announced a 6% increase in the quarterly dividend, marking the 64th consecutive year the Company has increased its dividend. P&G has been paying a dividend for 130 consecutive years, since its incorporation in 1890.
“The strong results we delivered this quarter are a direct reflection of the integral role our products play in meeting the daily health, hygiene and cleaning needs of consumers around the world,” said David Taylor, Chairman, President and Chief Executive Officer. “Our organization has been doing a terrific job against our near-term priorities – protecting the health and safety of each other, maximizing availability of P&G products to meet heightened consumer need and helping society meet and overcome the challenges of this crisis.”
We are deeply grateful for all you are doing to keep your operations running while ensuring the health and safety of your employees during these challenging times. We will continue to win together, as we always have and will.
Stew Atkinson – Ana Elena Marziano
P&G Chief Purchasing Officer