Summary
Procter & Gamble (PG) reported its fiscal third-quarter and nine-month results ending March 31, 2025. For the quarter, net sales slightly decreased by 2% to $19.8 billion, primarily due to unfavorable foreign exchange and a slight decline in unit volume, though this was partially offset by higher pricing. Net earnings remained flat year-over-year at $3.8 billion, with diluted Earnings Per Share (EPS) increasing 1% to $1.54. For the nine-month period, net sales saw a marginal decrease of $112 million to $63.4 billion, while net earnings increased by 5% to $12.4 billion, and diluted EPS rose by 6% to $5.03. The year-over-year improvement in earnings was significantly influenced by the absence of a large intangible asset impairment charge in the prior year, partially offset by current year restructuring charges. The company's performance demonstrates resilience in a challenging global economic environment, with strategic pricing actions helping to offset volume and currency headwinds. The Fabric & Home Care segment remained the largest contributor to net sales, while the Health Care segment showed positive organic sales growth. Investors will note the continued focus on productivity savings and disciplined cost management, alongside a stable operating cash flow generation, which supports ongoing capital allocation strategies like share repurchases and dividends.
Financial Highlights
53 data points| Revenue | $19.78B |
| Cost of Revenue | $9.69B |
| Gross Profit | $10.08B |
| SG&A Expenses | $5.52B |
| Operating Income | $4.56B |
| Net Income | $3.77B |
| EPS (Basic) | $1.58 |
| EPS (Diluted) | $1.54 |
| Shares Outstanding (Basic) | 2.35B |
| Shares Outstanding (Diluted) | 2.45B |
Key Highlights
- 1For the third quarter, Net Sales decreased 2% to $19.8 billion, driven by unfavorable foreign exchange and a 1% unit volume decline, partially offset by 1% higher pricing.
- 2Net Earnings for the quarter were flat at $3.8 billion, while Diluted EPS increased 1% to $1.54.
- 3For the nine months ended March 31, 2025, Net Sales were $63.4 billion, a slight decrease of $112 million year-over-year.
- 4Net Earnings for the nine-month period increased 5% to $12.4 billion, with Diluted EPS rising 6% to $5.03, benefiting from the absence of a prior year intangible asset impairment charge.
- 5Organic sales increased 1% for the quarter and 2% for the nine-month period, indicating underlying demand resilience.
- 6Operating cash flow for the nine months was $12.8 billion, with adjusted free cash flow of $10.6 billion.
- 7The company repurchased approximately $7.96 billion in shares during the quarter and plans to continue share repurchases totaling $6 to $7 billion in fiscal year 2025.