Benzinga | Jul 30, 2021 08:54AM EDT

Gillette Maker Procter & Gamble Beats On Q4 Earnings; CFO Sees Rising Input Costs Across The Range

* Procter & Gamble Co (NYSE:PG) reported fourth-quarter FY21 sales growth of 7.1% year-on-year, to $18.95 billion, beating the analyst consensus of $18.36 billion.

* Organic sales increased 4%, driven by a 1% increase in shipment volume, a 1% increase in pricing, and a favorable mix impact of 1%.

* Sales in the beauty segment rose 11%, the Grooming segment expanded 10%, and Health Care jumped 18%.

* Gross profit increased 5% Y/Y to $9.2 billion. The reported gross margin decreased by 120 basis points.

* The operating margin contracted 100 basis points to 18.7%, while operating income for the quarter rose 2% to $3.5 billion.

* PG Generated an operating cash flow of $4.1 billion for Q2 and held $10.3 billion in cash and equivalents as of June 30, 2021.

* Adjusted EPS of $1.13 beat the analyst consensus of $1.09.

* "As we look forwardto fiscal 2022, we expect to continue to grow top-line and bottom-line and to deliver another year of strong cash return to shareholders despite a challenging cost and operating environment," said CEO David Taylor.

* Outlook: P&G expects FY22 all-in sales growth and organic sales growth of 2% - 4%.

* The company expects GAAP EPS growth of 6% - 9%. Core EPS growth of 3% - 6% from $5.66 in FY21, versus the consensus of $5.93.

* P&G also expects to pay over $8 billion in dividends and repurchase $7 billion - $9 billion of common shares in FY22.

* PG CFO told Reuters that input costs across the range are high, with pulp, resin, and polypropylene being the primary drivers.

* Price action: PG shares are trading higher by 1.31% at $141.31 in premarket on the last check Friday.

* Photo by WikimediaImages from Pixabay