Procter & Gamble reports Q1 fiscal 2025 results with 2% organic sales growth

Procter & Gamble Company (P&G) announced net sales of US$21.7 billion for the first quarter of fiscal year 2025, reflecting a one percent decline compared to the same period last year. However, the company’s organic sales, which exclude the impacts of foreign exchange and acquisitions or divestitures, grew by two percent, building on a seven percent growth in the prior year.

Diluted net earnings per share for the quarter stood at US$1.61, a 12% decrease from the previous year, attributed to higher non-core restructuring charges. On the other hand, core earnings per share rose by five percent, reaching US$1.93.

P&G generated US$4.3 billion in operating cash flow during the quarter, while its net earnings amounted to US$4.0 billion. Adjusted free cash flow productivity, which is calculated by subtracting capital spending from operating cash flow and excluding a non-cash charge related to accumulated foreign currency translation losses in Argentina, was 82%, meeting the company’s expectations. P&G also returned close to US$4.4 billion to shareholders through US$2.4 billion in dividend payments and US$1.9 billion in share repurchases.

Commenting on the results, Jon Moeller, chairman of the Board, president, and chief executive officer, 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”. He added: “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. We have confidence this remains the right strategy to deliver balanced growth and value creation”.