Procter & Gamble reported fiscal second-quarter 2025 net sales of $21.88 billion, a 2% increase year-over-year, surpassing analyst estimates. Organic sales grew 3% in the quarter, driven by a 2% increase in organic volume and a 1% favorable geographic mix. Diluted net earnings per share were $1.88, up 34%, while core earnings per share increased 2% to $1.88, also beating expectations.
The company saw improved performance in Greater China, with organic sales declining only 3% compared to a 15% drop in the prior quarter. Overall volume grew 1% despite external challenges like a U.S. port strike and a global transportation system outage. The Baby, Feminine & Family Care division reported the largest volume increase at 4%, fueled by Charmin, Puffs, and Tampax.
P&G maintained its fiscal 2025 guidance, expecting core net earnings per share in the range of $6.91 to $7.05 and revenue growth of 2% to 4%. The company anticipates a $200 million after-tax commodity cost headwind and a $300 million after-tax foreign exchange headwind for the fiscal year. P&G generated $4.8 billion in operating cash flow and returned over $4.9 billion to shareholders through dividends and share repurchases.
During the earnings call, CFO Andre Schulten indicated that P&G would consider price hikes on household basics like Tide detergent if new tariffs are imposed, aiming to offset costs through productivity first. He also highlighted the success of innovations like Charmin Smooth Tear toilet paper and full-body deodorant sprays in driving volume and value share.
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