US' P&G posts net sales of $21.9 billion in Q2FY25

American multinational consumer goods giant Procter & Gamble Company (P&G) has reported net sales of $21.9 billion in the second quarter (Q2) of fiscal 2025 (FY25), an increase of 2 per cent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased 3 per cent versus the prior year.

The organic sales increase was driven by a 2 per cent increase in organic volume (which excludes the impact of acquisitions and divestitures) and 1 per cent increase from favourable geographic mix. Pricing had a neutral impact on sales growth for the quarter.

Diluted net earnings per share were $1.88, an increase of 34 per cent versus prior year, due primarily to a non-cash impairment of the carrying value of the Gillette intangible asset in the base year. Core earnings per share were $1.88, an increase of 2 per cent versus prior year, the company said in a press release.

Reported and core gross margin for the quarter decreased by 30 basis points versus the prior year and decreased by 20 basis points on a currency-neutral basis. Gross productivity savings of 150 basis points and benefits from increased pricing of 30 basis points were fully offset by 110 basis points of unfavourable mix, 50 basis points of unfavourable commodity costs, 40 basis points of product reinvestments and transportation services costs.

Operating cash flow was $4.8 billion, and net earnings were $4.7 billion for the quarter. Adjusted free cash flow productivity was 84 per cent. Adjusted free cash flow productivity is calculated as operating cash flow less capital spending, as a percentage of net earnings. The company returned over $4.9 billion of cash to shareowners via $2.4 billion of dividend payments and $2.5 billion of share repurchases.

“The P&G team delivered an acceleration in organic sales growth, core EPS growth and strong cash return to shareowners in the second quarter,” said Jon Moeller, chairman of the board, president and chief executive officer. “Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year. 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 organisation. This strategy has enabled our solid results and is a foundation for balanced growth and value creation.”

P&G maintained its guidance range for fiscal 2025 all-in sales growth to be in the range of 2-4 per cent 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 also maintained its outlook for organic sales growth in the range of 3-5 per cent.

P&G maintained its fiscal 2025 diluted net earnings per share growth to be in the range of 10-12 per cent versus fiscal 2024 diluted net EPS of $6.02. P&G also maintained its fiscal 2025 core earnings per share growth to be in the range of 5-7 per cent versus fiscal 2024 core EPS of $6.59. This outlook equates to a range of $6.91 to $7.05 per share, with a mid-point estimate of $6.98, or an increase of 6 per cent.

Procter & Gamble Company (P&G) reported net sales of $21.9 billion in the second quarter of 2025, a 2 per cent increase from the previous year, with organic sales up 3 per cent. Diluted net earnings per share rose 34 per cent to $1.88, while core EPS increased 2 per cent. Operating cash flow was $4.8 billion, with over $4.9 billion returned to shareholders.