Summary
The Procter & Gamble Company (PG) reported fiscal year 2025 revenues of $84.3 billion, a slight increase of 0.3% year-over-year, driven primarily by a 1% increase in pricing, which was mostly offset by a 1% unfavorable foreign exchange impact. Organic sales grew by 2%, indicating underlying demand strength across its diverse portfolio. The company demonstrated improved profitability with a 10% increase in operating income, reaching $20.5 billion, and a 7% rise in net earnings to $16.1 billion. This improvement was largely attributed to reduced selling, general, and administrative (SG&A) costs, including a 50 basis point reduction in marketing spending as a percentage of net sales, and the absence of a significant intangible asset impairment charge recorded in the prior year. Despite challenges in certain segments like Beauty, which saw a 2% net sales decline and an 8% drop in net earnings due to unfavorable product mix and a decline in the SK-II brand, other segments like Health Care and Fabric & Home Care showed resilience. Health Care net sales grew 2% with an 8% increase in net earnings, while Fabric & Home Care net sales were stable with a 3% increase in net earnings. The company maintained a strong financial position, generating $17.8 billion in operating cash flow, though this was a 10% decrease year-over-year. Adjusted free cash flow stood at $14.6 billion, with an 87% productivity rate. P&G reaffirmed its commitment to shareholder returns, continuing its long history of dividend payments and increases, and repurchased $6.5 billion in shares during the fiscal year.
Financial Highlights
57 data points| Revenue | $84.28B |
| Cost of Revenue | $41.16B |
| Gross Profit | $43.12B |
| R&D Expenses | $2.10B |
| SG&A Expenses | $22.67B |
| Operating Income | $20.45B |
| Net Income | $15.97B |
| EPS (Basic) | $6.67 |
| EPS (Diluted) | $6.51 |
| Shares Outstanding (Basic) | 2.35B |
| Shares Outstanding (Diluted) | 2.45B |
Key Highlights
- 1Procter & Gamble reported fiscal year 2025 net sales of $84.3 billion, a modest increase of 0.3% compared to the prior year, with organic sales growing by 2%.
- 2Operating income increased by 10% to $20.5 billion, and net earnings rose by 7% to $16.1 billion, indicating improved profitability and operational efficiency.
- 3The company executed a portfolio and productivity plan, announcing potential restructuring costs of $1.5 to $2.0 billion over two years, including a reduction of up to 7,000 non-manufacturing overhead personnel.
- 4Beauty segment net sales decreased by 2%, impacted by a decline in the SK-II brand and unfavorable product mix, though Personal Care saw strong growth.
- 5Health Care and Fabric & Home Care segments demonstrated stable performance, with net sales flat to slightly up and net earnings showing positive growth.
- 6Shareholder returns remained a priority, with $6.5 billion in share repurchases during FY2025 and a continued commitment to dividend payments.
- 7The company noted a $1.3 billion impairment charge on the Gillette intangible asset in the prior fiscal year, which benefited the current year's operating income comparison.