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

Executive summary

• Organic sales grew 2% year-over-year, driven by both volume and pricing, with 8 of 10 product categories showing growth or holding share; strong performance in family care, home care, and personal health care.

• Net sales for Q1 FY2025 were $21.7B, down 1% year-over-year, with net earnings falling 12% to $4.0B due to higher restructuring charges from the Argentina exit.

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

• North America and Europe focus markets showed sustained growth and market share gains, while China and Middle East remained volatile, with China organic sales down 15%.

• Nearly $4.4B was returned to shareholders in Q1 via dividends and share repurchases.

Financial highlights

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

• Operating cash flow reached $4.3B.

• 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 fiscal 2025 is $6.91–$7.05, representing 5–7% growth; diluted EPS growth projected at 10–12%.

• Adjusted free cash flow productivity target set at 90%; capital spending expected at 4–5% of sales.

• Plans to return $16–$17B to shareholders via dividends and share repurchases, with $10B in dividends and $6–$7B in buybacks.

• Guidance assumes no major supply chain disruptions, store closures, or significant commodity/currency headwinds.