P&G Announces Strong Fiscal Year 2025 Second Quarter Results

The Procter & Gamble Company (NYSE: PG) disclosed its financial performance for the second quarter of fiscal year 2025, showcasing positive growth across various key metrics. The company reported a notable increase of two percent in net sales, amounting to $21.9 billion, compared to the same period in the previous year. Organic sales, excluding foreign exchange impacts and acquisitions/divestitures, saw a three percent increase year-over-year.

Earnings per share (EPS) demonstrated significant growth, with diluted EPS reaching $1.88, marking a substantial 34% increase compared to the prior year. Core EPS stood at $1.88, showing a two percent rise year-on-year. Operating cash flow for the quarter totaled $4.8 billion, with net earnings at $4.7 billion. Adjusted free cash flow productivity stood at a solid 84%, reflecting the company’s financial strength.

Jon Moeller, Chairman of the Board, President, and CEO of Procter & Gamble, expressed satisfaction with the company’s performance, noting acceleration in organic sales growth and core EPS growth. He emphasized the company’s commitment to its growth strategy focused on a quality product portfolio, brand excellence, productivity, innovative disruption, and organizational agility.

In a segmented overview of the October to December 2024 period, notable performances were witnessed across P&G’s product categories. The Beauty segment saw a two percent increase in organic sales, driven by growth in Hair Care and Personal Care sectors. The Grooming and Health Care segments each reported a two percent increase in organic sales, while Fabric & Home Care, and Baby, Feminine & Family Care segments displayed three and four percent organic sales growth respectively.

Looking ahead to the remainder of fiscal year 2025, P&G has maintained its guidance range for all-in sales growth to be between two to four percent, with organic sales growth expected in the range of three to five percent. The company anticipates diluted net earnings per share to grow 10% to 12% compared to fiscal 2024, with core EPS projected to increase five to seven percent.

P&G foresees headwinds from commodity costs and unfavorable foreign exchange rates, expecting these factors to impact earnings negatively. The company anticipates a core effective tax rate of 20% to 21% for fiscal 2025, with capital spending estimated to be around four to five percent of net sales. Adjusted free cash flow productivity is expected to be 90% for the year, with plans to distribute approximately $10 billion in dividends and repurchase $6 to $7 billion of common shares.

Certain forward-looking statements contained in the release are subject to various risks and uncertainties, as detailed in the company’s reports. The disclosure also includes non-GAAP financial measures and explanations of their relevance to P&G’s operational performance and financial outlook.

Procter & Gamble continues to focus on sustaining growth, value creation, and maintaining financial stability amid evolving market conditions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Procter & Gamble’s 8K filing here.

About Procter & Gamble

Procter & Gamble Co engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances.