Procter & Gamble reported mixed fiscal third-quarter 2025 results on April 24, 2025, with net sales dropping 2% to $19.78 billion, missing analyst estimates. Organic sales increased by a modest 1%, while overall volume fell by 1%. Diluted and core net earnings per share were $1.54, each up 1%.
The company significantly cut its fiscal 2025 outlook, now expecting all-in sales to be approximately in-line with the prior year, down from a previous forecast of 2% to 4% growth. Organic sales growth is projected at approximately 2%, reduced from 3% to 5%. Core earnings per share guidance was lowered to $6.72-$6.82, from $6.91-$7.05.
Executives cited a consumer slowdown, new tariffs, and plans to invest back into brands as reasons for the trimmed outlook. CFO Andre Schulten noted a 'more nervous consumer' pulling back spending in February and March, leading to decreased traffic at retailers. He also stated that current tariffs are expected to hurt growth by $1 billion to $1.5 billion per year.
P&G anticipates a $200 million after-tax commodity cost headwind and a $200 million after-tax foreign exchange headwind for fiscal 2025. The company plans to mitigate tariff impacts through sourcing flexibility, productivity, and potential price increases in the next fiscal year, particularly on new and improved premium products like $380 electric toothbrushes and spruced-up Pampers diapers.
Segment performance showed a 2% volume decline in Baby, Feminine & Family Care, and a 1% decline in Health Care and Fabric & Home Care. Beauty volume was flat, while Grooming saw a 1% increase. Organic sales in Greater China fell 2%, compared to a 1% rise in North America.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.