The Procter & Gamble Company (PG) Q1 2025 earnings summary

Executive summary

• Organic sales grew 2% year-over-year, with both volume and pricing contributing one point; 8 of 10 product categories showed growth.

• Net sales for Q1 FY2025 were $21.7B, down 1% year-over-year; net earnings fell 12% to $4.0B, mainly due to Argentina exit charges.

• Core EPS increased 5% to $1.93, while diluted EPS declined 12% to $1.61 due to restructuring charges.

• 85% of the business (U.S., Canada, Europe, LatAm) grew 4% on a high base, while China and Middle East remain volatile.

• Strong innovation pipeline and constructive disruption underpin confidence in sustained growth.

Financial highlights

• Core EPS was $1.93, up 5% year-over-year; currency-neutral core EPS up 4%.

• Gross margin improved by 10 basis points to 52.1%; core operating margin rose 30 basis points to 26.7%.

• Adjusted free cash flow productivity was 82% for the quarter.

• Returned $4.4B to shareholders via $2.4B dividends and $1.9B share repurchases.

• Dividend per share increased to $1.0065 from $0.9407 year-over-year.

Outlook and guidance

• Fiscal 2025 organic sales growth guidance maintained at 3–5%; all-in sales growth expected at 2–4%.

• Core EPS guidance for FY25 is $6.91–$7.05, up 5–7% from FY24; diluted EPS growth projected at 10–12%.

• Adjusted free cash flow productivity target set at 90%; $10B in dividends and $6–7B in share repurchases planned.

• Commodity cost headwind of $200M after-tax expected; FX impact now neutral.

• Guidance excludes potential headwinds from market deceleration, currency weakness, commodity cost increases, supply chain disruptions, and geopolitical risks.