Today, the Procter & Gamble Company has reported its financial results for the first quarter of fiscal year 2025, revealing net sales of $21.7 billion, which reflects a slight decrease of one percent compared to the prior year. However, organic sales, which exclude the effects of foreign exchange and acquisitions, increased by two percent, albeit down from a strong base of seven percent growth in the previous year. Diluted net earnings per share stood at $1.61, marking a 12% decline year-over-year due to elevated non-core restructuring charges, while core earnings per share rose to $1.93, representing a five percent increase.
Operating cash flow for the quarter reached $4.3 billion, and net earnings totaled $4.0 billion. The company reported an adjusted free cash flow productivity rate of 82%, aligning with expectations. Jon Moeller, P&G’s Chairman, President, and CEO, emphasized the firm’s commitment to its integrated growth strategy, which focuses on a streamlined product portfolio in daily-use categories aimed at driving brand superiority and value creation.
The performance of each business segment varied: the Beauty segment reported net sales of $3.892 billion, a decrease of 5% year-over-year, with organic sales down by 2%. Hair Care organic sales saw low single-digit growth. Procter & Gamble noted that Hair Care experienced slight growth driven by premium products in North America and Europe, but faced challenges in Greater China. The Personal Care segment achieved high single-digit organic sales growth, fueled by innovative products. In contrast, the Skin Care category faced a significant decline, with sales dropping over 20% due to reduced demand for its premium SK-II line.
The Beauty Care segment’s net sales remained unchanged at $1.723 billion year-over-year. Driven by innovative products, organic sales grew by 3%, while the Health Care segment increased by 4%, with Personal Health Care benefiting from growth in respiratory products. The company maintained its gross margin figures, reporting a slight increase of 10 basis points year-over-year.
Looking ahead, P&G reaffirmed its fiscal 2025 guidance, projecting all-in sales growth between two to four percent and organic sales growth of three to five percent. The company anticipates that foreign exchange and divestitures will negatively affect overall sales growth by approximately one percentage point. Furthermore, P&G expects diluted net earnings per share growth of 10% to 12% and core earnings per share growth of five to seven percent, projecting a mid-point estimate of $6.98 per share for the fiscal year.
