Net Sales Dip 1% for P&G for 2025 Q1

The Procter & Gamble Company reported nets sales for Q1 2025 were $21.7 billion – a 1% dip in sales compared to the prior-year period.

Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased 2%, on a prior-year base period of 7% growth. The organic sales increase was driven by a 1% increase from higher pricing and a 1% increase in organic volume, which excludes the impact of acquisitions and divestitures, officials said.

“Our organic sales growth, earnings and cash results in the first quarter keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year,” said Jon Moeller, chairman of the board, president and CEO. “We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization.”

Performance by Segment

Beauty segment organic sales decreased 2% versus year ago. Hair care organic sales increased low single digits driven by volume growth and favorable premium product mix in North America, Europe and Latin America, partially offset by volume declines primarily in Greater China. Personal care organic sales increased high single digits driven by innovation-based volume growth and favorable product mix. Skin care organic sales declined more than 20% due to volume declines and unfavorable mix from lower sales of the super-premium SK-II brand.

Grooming segment organic sales increased 3% versus year ago behind innovation-driven volume growth partially offset by unfavorable geographic mix.

Fabric and home care segment organic sales increased 3% versus year ago. Fabric care organic sales increased low single digits due to favorable geographic mix from growth in North America and Europe. Home Care organic sales increased mid-single digits due to volume growth and favorable product mix.

Baby, feminine and family care segment organic sales were unchanged versus year ago. Baby care organic sales decreased mid-single-digits due to volume declines partially offset by favorable product mix. Feminine care organic sales increased low single digits driven by favorable product mix and increased pricing, partially offset by volume declines in international markets. Family care organic sales increased mid-single digits driven by strong volume growth.

Fiscal Year 2025 Guidance

P&G said it maintained its guidance range for fiscal 2025 all-in sales growth to be in the range of 2 to 4% versus the prior year. The combined headwinds from foreign exchange and divestitures are expected to negatively impact all-in sales growth by approximately one percentage point. The company said it also maintained its outlook for organic sales growth in the range of 3 to 5%.

P&G continues to expect a core effective tax rate to be in the range of 20% to 21% in fiscal 2025.

Capital spending is estimated to be in the range of 4 to 5% of fiscal 2025 net sales.

P&G said it continues to expect adjusted free cash flow productivity of 90% and expects to pay around $10 billion in dividends and to repurchase $6 to $7 billion of common shares in 2025.