All-in volume was unchanged versus prior year. Organic sales, excluding the impacts of foreign exchange and acquisitions and divestitures, increased two per cent. Higher pricing and organic volume each contributed one point of growth to organic sales. Mix was unchanged versus the prior year.
The organic sales of Fabric and Home Care segment increased one per cent in the fourth quarter versus a year ago. Fabric Care organic sales improved low single digits driven primarily by innovation-driven growth in North America. Home Care organic sales also increased in the low single digits due to volume growth in North America and Europe.
“We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment,” said Jon Moeller, chairman of the board, president and chief executive officer. “We've put in place strong plans to continue to deliver for all stakeholders in the current environment. In fiscal 2026, we expect to deliver another year of organic sales growth, Core EPS growth and strong adjusted free cash flow productivity. We remain committed to our integrated strategy – 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, all aimed at delivering sustainable, balanced growth and value creation.”
The company generated operating cash flow of $17.8 billion and net earnings of $16.1 billion for the fiscal. Adjusted free cash flow productivity was 87 per cent, which is calculated as operating cash flow less capital spending and certain other items, as a percentage of net earnings excluding the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina, the company said in a press release.
The company returned over $16 billion of value to shareholders in fiscal 2025 via $9.9 billion in dividend payments and $6.5 billion of share repurchases. With the dividend increase in April 2025, this marks the 69th consecutive year that P&G has increased its dividend and the 135th consecutive year that P&G has paid a dividend since its incorporation in 1890.
P&G expects fiscal 2026 all-in sales growth in the range of one to five per cent versus the prior year. This includes a one per cent benefit from the net impacts of foreign exchange rates and acquisitions and divestitures. The company expects organic sales growth in the range of flat to up four per cent versus prior year. Included in organic sales is a growth headwind of 30 to 50 basis points from brand and product form discontinuations.
ALCHEMPro News Desk (RR)
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