Procter & Gamble, the world’s largest consumer goods company and owner of brands such as Charmin and Bounty, released the results of its last fiscal year.
With a global presence in 70 countries, the company was able to advance in markets, drive revenue and profit growth, and had strong cash generation during fiscal 2021. “Market share grew globally, across many of our category/country combinations – and in the past quarter in the U.S. reached one of the highest absolute value shares in the last 20 years.”, commented the company.
“We delivered another year of strong results with balanced top and bottom-line growth and strong cash generation, exceeding each of our on-going targets. We built strong momentum prior to the pandemic and have strengthened our position further. As we look forward to 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 David Taylor, President and CEO of the company.
P&G reported net sales for fiscal year 2021 of $76.1 billion, an increase of 7% compared to the prior year. Excluding currency, acquisitions and divestitures impacts, organic sales increased 6% and diluted earnings per share were $5.50, an increase of 11% compared to the prior year. Basic earnings per share increased 11% from the prior year to $5.66.
The company generated $18.4 billion in operating cash flow in fiscal 2021, with an adjusted free cash flow productivity of 107%. The company also returned $19.3 billion of shareholder value through $8.3 billion in dividend payments and $11 billion in share repurchases.
For fiscal year 2022, P&G expects an effective tax rate in the range of 18% to 19% and capital expenditures in the range of 4% to 5% of net sales. The multinational also targets an adjusted free cash flow productivity of 90% and expects to pay more than $8 billion in dividends and repurchase between $7 billion and $9 billion of common stock.
Organic sales growth is expected for the next fiscal year in the range of 2% to 4% compared to the previous year.