Dear External Business Partners:
P&G announced results for the April-June quarter and for fiscal year 2024 on Tuesday, July 30. For the fiscal year, organic sales grew by 4%, marking the sixth consecutive year of 4% or better organic growth, against a strong 7% comparison versus the previous year and in more challenging market conditions.
Core earnings per share were up 12% for the year. Adjusted free cash flow productivity was 105%. We increased our dividend by 7% and returned over $14 billion dollars of value to shareowners through $9.3 billion in dividends and $5 billion in share repurchase. More details are provided in the chart below and in the press release here.
Progress and Outlook
As we close FY ’24, it is important to reflect on our journey and recognize the work ahead. Over the past six years, and with the support of our external business partners — before and during the COVID-19 pandemic and through a historic inflationary and pricing cycle and geopolitical tensions, we have consistently delivered organic sales growth ranging from 4% to 7%, along with strong earnings growth, gross and operating margin expansion, and very strong cash generation.
Looking ahead, we recognize the need for continuous improvement, agility, and proactive measures to overcome external challenges. Our focus remains on executing our integrated strategy, prioritizing performance-driven brand choice across daily-use products through product quality, packaging, brand communication, retail execution, and value. By executing effectively, we aim to drive market growth, create opportunities, and expand our share, sales, and profitability.
Strong Partnerships
We believe the success of our strategy is connected to partnerships with suppliers like you. We strive for superior propositions for consumers, customers, and shareowners that fuel category growth and are sustainable. We recognize we can’t do this alone, and we are counting on your ideas and innovations so we can continue making progress.
We are making good strides with collecting emission reduction plans from many of our partners. Specifically, we’ve recently completed successful pilots leveraging the P&G Greenchain Climate Data Platform, which enables consistent data reporting using standardized methodologies, in line with the World Business Council for Sustainable Development’s (WBCSD) Partnership for Carbon Transparency (PACT) program and its Pathfinder framework. We are preparing to fully launch Greenchain later this year. We need all our partners to join us and help drive the interventions and innovations needed for a pathway to NetZero by 2040.
Our P&G Climate Unlock Program for Suppliers is also designed to help accelerate your emission reduction journey. Over 100 partners are participating in our “Transition to Renewable Electricity” accelerator program and/or “Manufacturing Decarbonization” program, which supports suppliers in building their GHG reduction plan. If you are not one of them, we invite you to learn more and join as soon as possible.
As always, I thank you for your continued dedication, partnership, and contributions to our shared success. I look forward to achieving even greater heights as we serve consumers around the world.
