Procter & Gamble Co ( PG ) shares are trading lower after the company reported fourth-quarter FY24 sales of $20.53 billion (flat Y/Y), missing the analyst consensus estimate of $20.74 billion.

Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased 2%. A one percent increase in all-in volume and one percent increase due to higher pricing were offset by two percentage points of unfavorable foreign exchange impacts.

Sales in the Beauty segment fell 1%, the Grooming segment remained flat, and Health Care increased 3%.

Adjusted EPS of $1.40 beat the analyst consensus of $1.37.

Gross profit increased 2% Y/Y to $10.18 billion. The reported gross margin increased by 120 basis points to 49.6%.

Operating margin contracted 140 basis points to 18.9%, while operating income for the quarter fell 7% to $3.88 billion.

P&G held $9.48 billion in cash and equivalents as of June-end. Operating cash flow for the quarter was $5.75 billion.

The company returned over $14 billion of value to shareholders in FY24 via $9.3 billion in dividend payments and $5 billion of share repurchases.

“The team met or exceeded our going-in plans for organic sales growth, core EPS growth, cash generation and cash returned to shareowners in a challenging economic and geopolitical environment,” said Board Chairman, President, and CEO Jon Moeller.

Outlook: P&G sees FY25 all-in sales growth of 2% – 4% and organic sales growth of 3% – 5%. This outlook equates to FY25 revenue of $85.72 billion – $87.40 billion versus an estimate of $86.856 billion. 

P&G expects its fiscal 2025 core net earnings per share growth of 5% – 7% versus fiscal 2024 core EPS of $6.59. This outlook equates to FY25 adjusted EPS of $6.91 – $7.05 versus an estimate of $6.97.

P&G said it expects adjusted free cash flow productivity of 90% and expects to pay around $10 billion in dividends and to repurchase $6 to $7 billion of common shares in fiscal 2025.

Price Action: PG shares are trading lower by 5.40% at $160.75 in premarket on the last check Tuesday.

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