Segment Performance - Net sales for the Beauty segment accounted for 18% of total company net sales for both the three and six months ended December 31, 2024[81] - The Fabric & Home Care segment contributed 35% of total company net sales for both the three and six months ended December 31, 2024[81] - The Baby, Feminine & Family Care segment represented 24% of total company net sales for the three months ended December 31, 2024, and 23% for the six months ended December 31, 2024[81] - Beauty segment net sales remained unchanged at $3.8 billion, with a 10% decrease in net earnings to $780 million[113][114] - Grooming segment net sales increased by 1% to $1.8 billion, with net earnings up 4% to $459 million[119][120] - Health Care segment net sales grew by 2% to $3.2 billion, with net earnings increasing 5% to $758 million[123][124] - Fabric & Home Care segment net sales rose by 2% to $7.6 billion, but net earnings decreased by 1% to $1.6 billion[112] - Baby, Feminine & Family Care segment net sales increased by 3% to $5.3 billion, with net earnings up 2% to $1.1 billion[112] - Hair Care net sales decreased mid-single digits, with a 0.7-point decline in global market share[116] - Personal Care net sales increased double digits, with a 0.8-point increase in global market share[116] - Skin Care net sales decreased low single digits, with a 0.7-point decline in global market share[116] - Fabric & Home Care net sales increased 2% to $7.6 billion, driven by a 1% unit volume increase and 1% favorable mix[128] - Organic sales for Fabric & Home Care increased 3%, with organic volume up 2% and global market share rising 0.1 points[128] - Oral Care net sales increased low single digits, driven by premium product mix growth, with organic sales up low single digits and global market share increasing 0.2 points[131] - Personal Health Care net sales increased low single digits, with organic sales up low single digits, though global market share decreased 0.1 points[131] - Baby, Feminine & Family Care net sales increased 3% to $5.3 billion, driven by a 4% unit volume increase, with organic sales up 4%[134] - Family Care net sales increased double digits, driven by unit volume growth, with organic sales also up double digits and North America market share increasing 0.3 points[137] Financial Performance - Net sales increased 1% to $43.6 billion, with organic sales up 2%[89] - Net earnings rose 7% to $8.6 billion, driven by a $1.3 billion non-cash impairment charge in the prior year[89] - Diluted EPS increased 8% to $3.49, while Core EPS rose 4% to $3.81[89] - Operating cash flow was $9.1 billion, with adjusted free cash flow at $7.8 billion and productivity at 83%[89] - Net sales for the quarter increased 2% to $21.9 billion, with organic sales up 3%[94] - Operating income surged 30% to $5.7 billion, with operating margin up 550 basis points to 26.2%[97] - Net earnings for the quarter increased 33% to $4.7 billion, with diluted EPS up 34% to $1.88[100] - Gross margin decreased 30 basis points to 52.4% due to unfavorable product mix and higher commodity costs[95] - SG&A spending increased 4% to $5.7 billion, with SG&A as a percentage of net sales up 40 basis points to 26.2%[96] - The effective income tax rate decreased to 20.3% from 22.3% due to favorable geographic mix and higher excess tax benefits[99] - Net earnings increased by $597 million (7%) to $8.6 billion, with a positive foreign exchange impact of $17 million[111] - Total company net sales for the six months ended December 31, 2024, increased by 1% to $43.6 billion, with net earnings up 7% to $8.6 billion[112] - Corporate net earnings increased $1.2 billion to a loss of $24 million, primarily due to a $1.3 billion non-cash impairment charge on the Gillette intangible asset[141] - Operating cash flow decreased by $877 million to $9.1 billion, with working capital and other impacts using $2.2 billion of cash[143] - Adjusted free cash flow for the six months ended December 31, 2024, was $7,771 million, with operating cash flow of $9,127 million and capital spending of $1,918 million[151] - Adjusted free cash flow productivity for the six months ended December 31, 2024, was 83%, with net earnings adjusted to $9,398 million[152] - Core EPS for the three months ended December 31, 2024, was $1.84, compared to $1.40 in the same period of 2023[156] - Core net earnings attributable to P&G increased by 2% for the three months ended December 31, 2024, compared to the prior year[157] - Core net earnings attributable to P&G increased by 4% for the six months ended December 31, 2024, compared to the prior year[160] - Core EPS for the six months ended December 31, 2024, was $3.81, compared to $3.66 in the same period of 2023[162] Restructuring and Impairment Charges - The company completed a limited market portfolio restructuring in Argentina, incurring incremental restructuring charges of approximately $0.8 billion after tax[82] - Total incremental restructuring charges from December 31, 2023, to September 30, 2024, were approximately $1.2 billion after tax[82] - The Company recognized a non-cash, after-tax impairment charge of $1.0 billion related to the Gillette intangible asset[158] Geographic Performance - Greater China, the United Kingdom, Canada, Japan, and Germany collectively comprised approximately 20% of the company's net sales in fiscal 2024[85] - The company's Russia business accounted for less than 2% of consolidated net sales and net earnings in the fiscal year ended June 30, 2024[85] Market Risks and Challenges - The company is exposed to significant foreign exchange impacts due to the weakening of certain foreign currencies versus the U.S. dollar, which negatively affects net sales, net earnings, and cash flows[86] - The company has significant exposure to fluctuations in commodity and input material prices, particularly oil-derived materials like resins and paper-based materials like pulp[87] - The company faces risks from changes in U.S. and foreign government legislative, regulatory, or enforcement policies that can negatively impact net sales, net earnings, and cash flows[88] Organic Sales and Market Share - Organic sales growth for the Total Company was 3% for the three months ended December 31, 2024, with Baby, Feminine & Family Care leading at 4%[150] - Net earnings for Baby, Feminine & Family Care increased 2% to $1.1 billion, despite a 30 basis-point decline in net earnings margin[135]

Group 1 - The Procter & Gamble Company (NYSE:PG) held its Q2 2025 Earnings Conference Call on January 22, 2025, at 8:30 AM ET [1] - Key participants included Andre Schulten (CFO) and Jon Moeller (Chairman, President, CEO) [1] - The call was recorded for replay and included forward-looking statements [2] Group 2 - Procter & Gamble highlighted the use of non-GAAP financial measures during the discussion, which the company believes provide useful insights into underlying business trends [3] - A full reconciliation of non-GAAP financial measures is available on the company's Investor Relations website [3] - The call began with an overview of second quarter results by CFO Andre Schulten, followed by insights from CEO Jon Moeller [4]

Financial Data and Key Metrics - The company will reference non-GAAP financial measures during the discussion, which are believed to provide useful perspective on underlying business trends [3] - A full reconciliation of non-GAAP financial measures is available on the company's Investor Relations website [3] Business Lines and Key Metrics - No specific data or metrics related to individual business lines are provided in the content [1][2][3][4] Market Data and Key Metrics - No specific data or metrics related to individual markets are provided in the content [1][2][3][4] Company Strategy and Industry Competition - Jon Moeller, Chairman, President, and CEO, will provide perspective on the company's results and strategy [4] Management Commentary on Operating Environment and Future Outlook - No specific commentary on the operating environment or future outlook is provided in the content [1][2][3][4] Other Important Information - The discussion will include forward-looking statements, and factors that could cause actual results to differ materially from projections are discussed in the company's recent 10-K, 10-Q, and 8-K reports [2] Q&A Session - No Q&A session content is provided in the content [1][2][3][4]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers a wide range of sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in London, New York, Toronto, Vancouver, Sydney, and Perth [2] Group 2 - The company emphasizes the use of technology to enhance workflows and improve content production [4] - Proactive employs automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Financial Performance - Core earnings per share (EPS) of $1.88 increased 2% year over year, beating the Zacks Consensus Estimate of $1.86 [2] - Currency-neutral core EPS rose 3% year over year [2] - Net sales of $21.9 billion increased 2% year over year, surpassing the Zacks Consensus Estimate of $21.6 billion [3] - Organic sales grew 3% year over year, driven by a 2% increase in organic volume [4] - All business segments reported growth in organic sales, with the Baby, Feminine & Family Care segment leading at 4% [6] Segment Performance - Baby, Feminine & Family Care segment net sales grew 3% year over year [5] - Health Care and Fabric & Home Care segments each saw 2% net sales growth [5] - Grooming segment net sales improved 1%, while Beauty segment net sales were flat [5] - Organic sales growth was 4% for Baby, Feminine & Family Care, 3% for Health Care and Fabric & Home Care, and 2% for Grooming and Beauty segments [6] Margins and Expenses - Core and reported gross margin declined 30 basis points (bps) year over year to 52.4% [7] - Currency-neutral gross margin contracted 20 bps to 52.5% [7] - Core SG&A expenses as a percentage of sales increased 50 bps to 26.2% [8] - Core operating margin contracted 80 bps year over year to 26.2% [9] Cash Flow and Shareholder Returns - Operating cash flow was $4.8 billion, with adjusted free cash flow of $3.9 billion [11] - Adjusted free cash flow productivity was 84% [11] - Returned $4.9 billion to shareholders, including $2.4 billion in dividends and $2.5 billion in share buybacks [13] Fiscal 2025 Guidance - Anticipates year-over-year all-in sales growth of 2-4% and organic sales growth of 3-5% [14] - GAAP EPS expected to increase 10-12% from fiscal 2024, with core EPS rising 5-7% [15] - Core EPS guidance range is $6.91-$7.05, with a mid-point of $6.98 [15] - Adjusted free cash flow productivity estimated at 90% [18] - Plans to pay $10 billion in dividends and repurchase $6-$7 billion in shares [18] Industry Comparison - Clorox (CLX) has a Zacks Rank 2 with a trailing four-quarter earnings surprise of 45.9% [19][20] - Energizer (ENR) has a Zacks Rank 2 with a trailing four-quarter earnings surprise of 8.3% [20][21] - Ollie's Bargain Outlet (OLLI) has a Zacks Rank 2 with a trailing four-quarter earnings surprise of 5% [21][22]

Financial Performance - Procter & Gamble's fiscal 2025 second-quarter net sales grew 2% year-over-year to $21.88 billion, surpassing Wall Street estimates of $21.59 billion [1] - Net income for the quarter was $4.63 billion, or $1.88 per share, matching expectations [1] - The company's shares rose 3% following the earnings report [1][3] Segment Performance - Baby, Feminine & Family Care segment, including Tampax and Pampers, saw a 3% increase in sales [2][3] - Fabric & Home Care segment, featuring Tide and Febreze, and Health Care segment, including Crest and Pepto Bismol, both experienced 2% sales growth [2] - Grooming segment, with Gillette and Venus razors, reported a 1% revenue increase [2] - Beauty segment, including Head & Shoulders and Old Spice, showed flat sales [2] Outlook and Share Repurchase - Procter & Gamble reaffirmed its fiscal 2025 outlook, projecting sales growth of 2% to 4% from $84 billion in the previous year [3] - The company expects earnings per share (EPS) growth of 10% to 12% from $6.02 in fiscal 2024 [3] - Procter & Gamble plans to repurchase $6 to $7 billion worth of shares in the current fiscal year [3]

Core Insights - Procter & Gamble (P&G) reported solid earnings, surpassing analyst estimates, with shares increasing by 2.7% [1] - The company achieved organic sales growth of 3% in the fiscal second quarter, indicating strong volume growth without price hikes [2] - Overall revenue rose 2% to $21.9 billion, exceeding the consensus estimate of $21.6 billion [3] Financial Performance - Organic volume increased by 2%, while prices remained flat; the baby, feminine, and family care segment saw a 4% increase in both organic volume and sales [2] - Gross margin decreased by 30 basis points due to a negative sales mix and rising commodity costs, despite 150 basis points of productivity savings [3] - Core earnings per share rose from $1.84 to $1.88, beating estimates of $1.86, attributed to a reduction in tax expenses [4] Future Outlook - P&G's guidance indicates expected organic sales growth of 3% to 5% and overall revenue growth of 2% to 4%, which is better than the consensus of 1.4% [4] - Core EPS growth is projected at 5% to 7%, with estimates ranging from $6.91 to $7.05, slightly above the consensus estimate of $6.93 [4] Investment Perspective - P&G is recognized for its reliability as a stock, with a strong track record of profit and dividend growth, making it an attractive option for conservative investors [5]

Core Insights - Procter & Gamble (P&G) reported a 2% increase in net sales for Q2 FY2025, reaching $21.9 billion, indicating resilience in consumer demand for household staples [2][4] - The company's diversified product portfolio showed varied outcomes, with organic sales growth in beauty and grooming at 2%, while healthcare saw a 3% increase, and fabric and home care reported 3% growth [3][4] - P&G's focus on innovation and consumer-centric strategies has driven competitive advantages, with executives emphasizing the importance of understanding consumer needs [5][6] Segment Performance - The family care segment experienced double-digit growth, attributed to strong volume growth, while premium offerings in oral care and personal health contributed to healthcare's organic sales increase [4][9] - Innovations in the fabric and home care segment, including premium cleaning solutions, have led to volume and margin growth, showcasing the effectiveness of P&G's innovation strategy [6][9] - Despite challenges in the Greater China market, P&G's premium and super-premium product lines have performed well, aligning with consumer preferences for quality and sustainability [9][10] Strategic Focus - P&G is capitalizing on digital transformation and eCommerce, with online sales increasingly contributing to revenue, reflecting a shift in consumer shopping behaviors [7][8] - The company maintains a confident outlook for FY2025, projecting organic sales growth of 3% to 5% and core EPS growth of 5% to 7%, despite acknowledging headwinds such as commodity costs and currency fluctuations [11][12] - P&G's integrated growth strategy emphasizes a focused product portfolio in daily use categories, aiming for superior performance across various aspects of brand execution and consumer value [12]

Core Insights - Procter & Gamble (PG) reported revenue of $21.88 billion for the quarter ended December 2024, reflecting a 2.1% increase year-over-year and a surprise of +1.33% over the Zacks Consensus Estimate of $21.6 billion [1] - Earnings per share (EPS) for the quarter was $1.88, up from $1.84 in the same quarter last year, with an EPS surprise of +1.08% compared to the consensus estimate of $1.86 [1] Financial Performance Metrics - Organic Sales Growth for Beauty was 2%, exceeding the estimated -0.7% [4] - Organic Sales Growth for Grooming was 2%, slightly below the estimated 3.2% [4] - Organic Sales Growth for Health Care was 3%, below the estimated 5.9% [4] - Organic Sales Growth for Baby, Feminine & Family Care was 4%, significantly above the estimated 0.6% [4] - Organic Sales Growth for Fabric & Home Care was 3%, in line with the estimated 3.1% [4] - Total Organic Sales Growth for P&G was 3%, surpassing the estimated 2.2% [4] Net Sales Performance - Net sales for Beauty reached $3.85 billion, exceeding the average estimate of $3.76 billion, with no year-over-year change [4] - Net sales for Grooming were $1.75 billion, slightly above the estimated $1.74 billion, representing a +1% change year-over-year [4] - Net sales for Corporate were $159 million, significantly above the average estimate of $130.32 million, reflecting a +26.2% year-over-year change [4] - Net sales for Fabric & Home Care were $7.58 billion, slightly above the estimated $7.55 billion, with a +2.2% year-over-year change [4] - Net sales for Baby, Feminine & Family Care were $5.30 billion, exceeding the estimated $5.12 billion, representing a +3% change year-over-year [4] - Net sales for Health Care were $3.25 billion, below the estimated $3.33 billion, with a +2.4% year-over-year change [4] Stock Performance - P&G shares have returned -4.3% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Procter & Gamble topped expectations in fiscal 2025's Q2 with strong revenue figures, but it continues to face challenges with supply chain costs.Consumer goods powerhouse Procter & Gamble (PG 2.74%) reported fiscal year 2025 second-quarter earnings on Wednesday, Jan. 22, that topped analyst consensus estimates. Core earnings per share (EPS) came in at $1.88 over the anticipated $1.86 while revenue reached $21.9 billion, exceeding projections by $400 million and improving by 2.3% from the second quarter of ...