Procter & Gamble (P&G) is a big company that makes products we use every day. It started in 1837 and was created by William Procter and James Gamble. Today, P&G sells its products in over 180 countries and has many famous brands like Tide, Pampers, Gillette, Pantene, Oral-B, and Olay. They make things for beauty, grooming, health care, cleaning, and baby care.
P&G focuses a lot on new ideas and being good to the environment. They work on reducing waste, using renewable energy, and saving water. The P&G also helps communities with projects and supports diversity. The company is known for doing well financially and making a positive impact on people’s lives around the world.
P&G Fiscal Q2 2025
P&G (PG) achieved net sales of $21.9 billion for the second quarter of fiscal year 2025, marking a 2% increase compared to the prior year. Also, organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, rose by 3%.
The company reported diluted net earnings per share (EPS) of $1.88, a significant 34% increase. Core EPS also increased by 2% to $1.88.
Moreover, P&G’s operating cash flow for the quarter was $4.8 billion. The company’s adjusted free cash flow productivity stood at 84%. Also, P&G returned over $4.9 billion of cash to shareowners through dividend payments and share repurchases.
Segment Performance:
- Beauty: Organic sales increased by 2%, driven by volume growth in Hair Care and Personal Care, partially offset by declines in Skin Care.
- Grooming: Organic sales grew by 2%, fueled by innovation-driven volume growth.
- Health Care: Organic sales rose by 3%, with growth in Oral Care and Personal Health Care.
- Fabric and Home Care: Organic sales increased by 3%, supported by volume growth and favorable geographic mix.
- Baby, Feminine, and Family Care: Organic sales grew by 4%, driven by strong performance in Family Care.
Guidance
P&G maintained its guidance for fiscal 2025, projecting all-in sales growth in the range of 2% to 4% and organic sales growth of 3% to 5%.
The company expects diluted net EPS growth to be between 10% and 12%, with core EPS growth projected at 5% to 7%. P&G anticipates a commodity cost headwind of approximately $200 million and an unfavorable foreign exchange rate impact of $300 million after tax.
Board Statements
Jon Moeller, Chairman of the Board, President, and CEO: “Our team did a great job this quarter, with more growth in organic sales and core earnings per share, plus strong returns of cash to our shareholders.
The results from the first half of the year show that we’re on track to meet our financial targets. We’re sticking to our strategy of focusing on key everyday products that people choose because of their quality.
Meanwhile, by excelling in product performance, packaging, marketing, retail execution, and value, along with maintaining productivity and innovation, we’ve achieved solid results and laid a strong foundation for balanced growth and value creation.”
Impact on the Market
P&G delivered solid financial results in the second quarter of fiscal year 2025, reflecting the company’s commitment to its integrated growth strategy. Also, with strong cash returns to shareowners and a focus on productivity and innovation, P&G is well-positioned to achieve its financial goals for the fiscal year.
The stock price saw an upward movement following the earnings report, reflecting confidence in P&G’s financial health and growth prospects.
