Dear External Business Partners:
P&G released its third quarter earnings on Friday, April 19, 2024. During the January through March quarter, P&G reported net sales of $20.2 billion, an increase of one percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased three percent. Diluted net earnings per share were $1.52, an increase of 11% versus prior year. Operating cash flow was $4.1 billion, and net earnings were $3.8 billion for the quarter. Adjusted free cash flow productivity was 87%, which is calculated as operating cash flow excluding capital spending, as a percentage of net earnings. More details are provided in the chart below and in the press release here.
Our results reinforce P&G’s commitment to its integrated growth strategy – a strategy that is designed to be dynamic, where complacency is not an option as we recognize that we will continue to operate in a volatile consumer environment with macroeconomic headwinds and increasing geopolitics tensions and instability. Therefore, we need to maintain a very high bar by strengthening every aspect of superiority – product, package, brand communication, retail execution and value. This will require continuous investment, which comes from a commitment to ongoing productivity in everything we do.
These strategic choices are mutually interdependent and have demonstrated time and time again that when executed well, they grow markets, categories, share, sales, and profit. Our mission is irresistible superiority that drives category growth and is sustainable. But we can’t do this alone. We need all our External Business Partners to help – we need your unique ideas, your ingenuity and leadership in your respective industries. We must continue to partner together to raise the bar, and to ultimately continue to deliver on our commitments to our global consumers, shareholder, society and the planet.
P&G is at its best when we collaborate, when we share our business challenges, and when we embrace a wide range of ideas to solve our biggest dilemmas. We count on our entire supply ecosystem to engage and help us identify the best opportunities to drive meaningful results – and that is why we were excited to recognize our external business partners who have been instrumental in helping P&G win in the marketplace.
At the end of April, P&G celebrated the impact of our diverse network of external business partners or suppliers and recognized the very best with a P&G Partner of the Year Award. This award goes to suppliers that have gone above and beyond in delivering sustained value to our business and the consumers P&G serves. This year, P&G also proudly recognized a distinguished group of five suppliers with its Supplier Impact Award for their key contributions in the areas of environmental sustainability and equality and inclusion, which are fundamental to our success. These companies have been among the very best in delivering sustained and exceptional contributions, and we celebrate them for being integral members of our supply ecosystem.
The 2024 P&G External Business Partner of the Year Award Winners:
A.P. Moller – Maersk
Alpla
Carat North America
Green Bay Packaging, Inc.
Gulsan
HAYCO
Hood Container Corporation
IFF H&B
Ronchi Mario SPA
Sandler AG
Shandong Tianli Pharmaceutical Co., Ltd.
Yamada Electric Ind. Co. Ltd.
The 2024 P&G Supplier Impact Award Winners:
DSM-Firmenich
Impacta SA Industria & Comercio
Jones Lang LaSalle
Nippon Shokubai Co., Ltd.
Yamada Electric Ind. Co. Ltd
To close, I thank you for everything you’ve done to enable P&G delivering another strong quarter. Together with our valued partners, we are creating an integrated, agile and robust supply network where P&G, customers, physical distribution partners and suppliers interact seamlessly and efficiently to serve consumers. We know that together we can have even larger, positive impact on the communities where we operate in service to the world’s consumers.
Chief Purchasing Officer
*See P&G’s investor website (www.pginvestor.com) for P&G's full Q3 earnings release issued April 19, 2024, the associated webcast presentation, definitions of non-GAAP measures and reconciliation to the most closely related GAAP measure, as well as cautionary information on forward-looking statements, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.