Yesterday, The Procter & Gamble Company released its financial results for the third quarter of fiscal year 2025, reporting net sales of $19.8 billion—a 2% decline compared to the same period last year. Despite the drop in total sales, organic sales, which exclude the effects of foreign exchange and portfolio changes, grew by 1%, driven primarily by higher pricing.
Net earnings for the quarter totaled $3.8 billion, supported by an operating cash flow of $3.7 billion. Adjusted free cash flow productivity stood at 75%, demonstrating solid financial discipline.
CEO Jon Moeller emphasized the company’s commitment to long-term growth through a focused product portfolio and superior execution across brand performance, innovation, and value. While the company made slight downward adjustments to its near-term outlook in response to market volatility, it remains confident in the strength of its strategy and its positioning within core categories.
Segment performance varied across business lines. In Beauty, net sales recorded $3.49 billion, down 2% year on year, with Personal Care showing strong innovation-led volume growth.
Among this segement, Hair Care organic sales was unchanged as increased pricing in Latin America and North America and favorable premium product mix were offset by volume declines primarily in Greater China. Personal Care organic sales increased high single digits driven by innovation-driven volume growth, partially offset by negative impacts from geographic mix. Skin Care organic sales declined low single digits due to volume declines and unfavorable geographic mix, partially offset by increased pricing primarily in Greater China.
The Grooming segment saw $1.5 billion in net sales with 2% decline. But its organic sales increased three percent versus year ago behind volume growth and higher pricing primarily in Latin America, Europe and North America.
Health Care segment recorded $2.88 billion in net sales, remain flat. Its organic sales increased four percent versus year ago. Oral Care organic sales increased low single digits driven by product mix from premium innovation, partially offset by volume declines. Personal Health Care organic sales increased high single digits due to volume growth and increased pricing, primarily in Latin America and Europe.
Looking ahead, P&G expects full-year 2025 all-in sales to be approximately flat compared to the previous year, with organic sales growing around 2%. The company raised its guidance for diluted EPS growth to a range of 6% to 8% versus fiscal 2024, with core EPS projected to be between $6.72 and $6.82, representing a growth of 2% to 4%.
