Title: Procter & Gamble Financial Statements 2021: An Overview
Introduction:
Procter & Gamble (P&G), one of the world's leading consumer goods companies, has released its financial statements for the year 2021. This article provides an overview of the key financial highlights, performance, and future outlook for the company.
Revenue and Net Income:
In 2021, P&G achieved a total revenue of approximately 70.4 billion, representing a decrease of 4% compared to the previous year. The decline can be attributed to the impact of the COVID-19 pandemic and supply chain disruptions. Despite the challenges, the company reported a net income of 7.3 billion, a decrease of 11% compared to 2020.
Revenue by Segment:
P&G operates through six segments: Beauty, Grooming, Health Care, Baby, Family Care, and Fabric & Home Care. In 2021, Beauty accounted for the highest revenue contribution, followed by Grooming. Health Care and Baby segments also contributed significantly to the overall revenue. Family Care and Fabric & Home Care segments experienced a decline in revenue.
Geographic Performance:
North America and Europe were the major contributors to P&G's revenue in 2021. The company's performance in these regions was relatively stable compared to other regions. Asia-Pacific and Latin America, on the other hand, faced challenges due to supply chain disruptions and economic uncertainties.
Earnings Per Share (EPS):
P&G's earnings per share (EPS) for 2021 stood at $4.11, a decrease of 14% compared to 2020. The decline in EPS can be attributed to the decrease in revenue and higher expenses, particularly due to increased costs of raw materials and transportation.
Investment in Research and Development:
P&G continued to invest in research and development (R&D) to drive innovation and improve its product offerings. In 2021, the company allocated approximately $2.1 billion to R&D, which is a significant portion of its total revenue. This investment focused on developing sustainable and eco-friendly products.
Dividends and Share Repurchases:
P&G maintained its commitment to shareholders by paying dividends and engaging in share repurchases. In 2021, the company declared dividends totaling approximately 4.7 billion and repurchased approximately 7.4 billion worth of shares.
Conclusion:
Despite the challenges faced in 2021, Procter & Gamble continued to deliver strong financial performance. The company's focus on innovation, cost management, and shareholder value creation positions it well for future growth. However, the company needs to address the challenges posed by the global economic environment and supply chain disruptions to achieve sustainable growth in the long term.
Procter & Gamble Financial Statements 2021: A Trivia Game Guide
Designed for Players to Test Their Knowledge of P&G’s 2021 Performance
Game Rules
Format: 10 trivia questions (Easy, Medium, Hard) with answers and analysis.
Objective: Master P&G’s 2021 financial highlights, risks, and strategic moves.
Target Audience: Finance students, investors, or teams interested in FMCG sector trends.
Question 1 (Easy)
Q: What was P&G’s total revenue for 2021?
A: $95.7 billion
Analysis: Revenue grew 8% YoY, driven by strong demand for household and hygiene products during the pandemic.
Question 2 (Medium)
Q: Calculate P&G’s gross margin ratio for 2021.
A: 55.3%
Calculation:
Gross Margin = (Revenue - COGS) / Revenue
= (95.7B - 43.2B) / $95.7B ≈ 55.3%
Insight: Consistent with FMCG industry norms, reflecting pricing power and cost management.
Question 3 (Hard)
Q: How did P&G’s R&D spending impact its innovation pipeline in 2021?
A: $1.8 billion invested; launched 50+ new products (e.g., Tide pod状, Olay Skincare).
Analysis: R&D up 6% YoY; focus on premiumization and digital retail partnerships.
Question 4 (Easy)
Q: What was P&G’s net income for 2021?
A: $12.1 billion
Trend: 21% YoY growth, supported by cost synergies post-Dove acquisition.
Question 5 (Medium)
Q: What region contributed the highest revenue growth for P&G in 2021?
A: Asia Oceania (14% growth, led by India and China).
Key Move: Expanded FMCG e-commerce partnerships in India (e.g., Flipkart, Amazon).
Question 6 (Easy)
Q: How much did P&G return to shareholders in 2021?
A: 14.3 billion (dividends + buybacks). Strategy: Share repurchases accounted for ~7.2B, boosting EPS by 22%.
Question 7 (Hard)
Q: What risk did P&G highlight in its 2021 annual report?
A: Supply chain disruptions and inflationary pressures in key markets.
Mitigation: Diversified manufacturing hubs and $500M invested in automation.
Question 8 (Medium)
Q: What was P&G’s EPS (Earnings Per Share) for 2021?
A: 4.11 Calculation: Net Income / Shares Outstanding = 12.1B / 294M shares.
Question 9 (Easy)
Q: How did P&G perform in India in 2021?
A: Revenue grew 18% to $3.2 billion; captured 25% market share in laundry detergents.
Key Product: Tide Ultra was top-seller.
Question 10 (Hard)
Q: What strategic acquisition did P&G complete in 2021?
A: $5.4 billion acquisition of personal care brand Dove.
Impact: Strengthened presence in premium skincare and men’s grooming.
Final Scorecard
Easy: Q1, Q4, Q6, Q8, Q9
Medium: Q2, Q5, Q7
Hard: Q3, Q10
Winning Tip: Players who noted regional focus (India/China) and shareholder returns (buybacks) earned bonus points!
Source: P&G 2021 Annual Report, SEC filings, and Statista. For deeper analysis, refer to P&G’s investor relations page.
Let me know if you need a PDF version or interactive quiz format! 🎮📊
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