PROCTER & GAMBLE Co Quarterly Report for Q1 Ended Sep 30, 2024

Summary

Procter & Gamble's (PG) Q1 fiscal year 2025 report shows a slight decrease in net sales to $21.7 billion, down 1% year-over-year. This decline was primarily driven by unfavorable foreign exchange and a slight decrease in unit volume, though offset by a 1% increase in pricing. On an organic basis, sales increased by 2%, indicating underlying business strength. Net earnings attributable to P&G decreased by 12% to $4.0 billion, largely due to significant restructuring charges of $0.8 billion after tax related to the liquidation of operations in Argentina. Excluding these one-time charges, Core Diluted EPS saw a positive increase of 5% to $1.93, highlighting the company's ability to manage profitability even amidst challenging market conditions. The company maintained strong operating cash flow of $4.3 billion and is committed to returning capital to shareholders through dividends and share repurchases.

Key Highlights

• 1Net sales for the quarter were $21.7 billion, a 1% decrease year-over-year, but organic sales grew by 2%, indicating underlying business resilience.
• 2Net earnings attributable to P&G declined by 12% to $4.0 billion, significantly impacted by $0.8 billion in after-tax restructuring charges from exiting operations in Argentina.
• 3Core Diluted EPS, excluding restructuring charges, increased by 5% to $1.93, demonstrating improved operational profitability.
• 4The Beauty segment experienced a 5% net sales decrease, primarily due to a decline in the super-premium SK-II brand and unfavorable product mix.
• 5Health Care and Fabric & Home Care segments showed modest net sales growth of 2% and 1% respectively, driven by pricing and volume increases.
• 6Operating cash flow remained strong at $4.3 billion, with adjusted free cash flow of $3.87 billion.
• 7The company plans to reduce outstanding shares through share repurchases valued at $6 to $7 billion in fiscal year 2025.

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