- Procter & Gamble (PG, Financial) reports a 2% decline in net sales for Q3 FY 2025, while organic sales increase by 1%.
- Diluted EPS and core EPS each rise by 1% to $1.54.
- Fiscal 2025 guidance updated, anticipating a 2-4% growth in core earnings per share.
Procter & Gamble (PG) has released its financial results for the third quarter of fiscal year 2025, reporting net sales of $19.8 billion, marking a 2% decrease compared to the previous year. However, the company's organic sales—which exclude the impacts of foreign exchange, acquisitions, and divestitures—showed a modest increase of 1% year-over-year, driven by higher pricing.
Both diluted and core earnings per share (EPS) increased by 1% to $1.54, indicating steady growth despite the challenging market conditions. Operating cash flow for the quarter was $3.7 billion, while net earnings stood at $3.8 billion.
In its updated fiscal 2025 guidance, P&G projects that its all-in sales will be approximately in line with the prior year, with organic sales expected to grow around 2%. The company has revised its diluted EPS growth guidance for the fiscal year to range between 6% and 8%, aligned with previous fiscal performance.
P&G emphasizes its commitment to returning cash to shareholders, having distributed $3.8 billion in the form of $2.4 billion in dividend payments and $1.4 billion in share repurchases during the quarter. The dividend announcement earlier this month marks the 69th consecutive year of increases.
The company acknowledges several headwinds for fiscal 2025, including anticipated commodity cost pressures and unfavorable foreign exchange rates, each projected to be approximately $200 million after tax. Despite these challenges, P&G continues to focus on long-term growth through ongoing investment in superior innovation across its varied product categories.
