PG · Forward model · Corporate

Assumptions & reasoning

• Corporate is carried as a sixth revenue-bearing vertical because P&G reports $919m of Corporate net sales that have to be in the revenue reconciliation; excluding it would leave a 1.06% hole against reported consolidated net sales. It is not a business: it holds incidental businesses managed at the corporate level, divested-brand gains and losses, unallocated employee benefit and restructuring costs, asset impairments and interest.
• Because this vertical already is the unallocated overhead, corporate.overheadPctRevenue is set to zero. Adding a second overhead line on top would count the same cost twice. The -96.74% EBITDA margin is (Corporate operating loss $(1,289)m + Corporate depreciation and amortisation $400m) / Corporate net sales $919m - a $889m cost on $919m of revenue, which is why the percentage is meaningless as a margin and correct as an arithmetic carrier.
• The terminal margin of -15.23% is the one assumed margin change in the model. It removes the $749m of incremental restructuring P&G adjusted out of fiscal 2026 core earnings, because the Focused Portfolio, Supply Chain and Productivity Plan announced in June 2025 runs two years and P&G guides only $0.13 to $0.17 per share of non-core restructuring left in fiscal 2027. The ongoing $250-500m annual restructuring baseline stays in the line. The 0.35 glide closes 82% of that gap inside four quarters.
• The trailing deseasonalised rate for this line is 4.65% a quarter, which is an artefact of a small residual that swings between $126m and $292m with no repeating pattern. Extrapolating it would add $391m of phantom revenue in fiscal 2027 and about $2.4bn by 2031, so growth is pinned at 0.25% a quarter as an explicit assumption.