CINCINNATI (dpa-AFX) - Consumer goods giant Procter & Gamble Co. (PG) reported on Wednesday that profit for the second quarter increased 34 percent from last year, driven primarily by improved operating margin and a 2 percent sales growth.
Core earnings per share and quarterly sales topped analysts' estimates. Looking ahead, the company maintained its guidance for full-year 2025.
In pre-market activity on the NYSE, PG shares are trading at $167.13, up $5.41 or 3.35 percent.
'The P&G team delivered an acceleration in organic sales growth, core EPS growth and strong cash return to shareowners in the second quarter,' said Jon Moeller, Chairman, President and Chief Executive Officer.
For the second quarter, net earnings attributable to P&G increased 34 percent to $4.63 billion or $1.88 per share from $3.47 billion or $1.40 per share in the prior-year quarter. Core earnings per share were $1.84 per share.
On average, 22 analysts polled expected the company to report earnings of $1.60 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 2 percent to $21.88 billion from $21.44 billion in the same quarter last year. Analysts had a consensus revenue estimate of $20.63 billion for the quarter.
Excluding the net impacts of foreign exchange, acquisitions and divestitures, organic sales increased 3 percent, driven by a two percent increase in organic volume and a one percent increase from favorable geographic mix. Pricing had a neutral impact on sales growth for the quarter.
Baby, Feminine and Family Care segment sales increased 3 percent, Health Care segment sales grew 2 percent, Fabric & Home Care segment sales improved 2 percent and Grooming segment sales edged up 1 percent from last year. Beauty segment sales were flat. Organic sales growth was seen across all five segments.
Operating margin for the quarter increased 550 basis points, primarily driven by gross productivity savings of 260 basis points.
'Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year,' added Moeller.
Looking ahead to fiscal 2025, the company still expects earnings per share to grow 10 to 12 percent from the base fiscal 2024 earnings of $6.02 per share, implying earnings in the range of $6.62 to $6.74 per share.
P&G also continues to expect its core net earnings per share growth in the range of 5 to 7 percent from the base fiscal 2024 core earnings of $6.59 per share, implying adjusted earnings in the range of $6.91 to $7.05 per share.
Further, the company maintained its guidance range for fiscal 2025 all-in sales growth to be in the range of 2 to 4 percent and organic sales growth in the range of 3 to 5 percent.
The Street is looking for earnings of $6.93 per share on revenue growth of 1.42 percent to $85.23 billion for the year. Analysts' estimates typically exclude special items.
P&G continues to expect adjusted free cash flow productivity of 90% and expects to pay around $10 billion in dividends and to repurchase $6 billion to $7 billion of common shares in fiscal 2025.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
