In this article, Procter & Gamble reported quarterly earnings and revenue that exceeded analysts’ expectations due to improved sales in the U.S. and China, its two largest markets. The company’s shares increased by over 3% in morning trading.
For the quarter ended Dec. 31, P&G reported fiscal second-quarter net income attributable to the company of $4.63 billion, or $1.88 per share, up from $3.47 billion, or $1.40 per share, a year earlier. Net sales rose 2% to $21.88 billion. The company’s organic revenue, excluding currency changes and divestments, grew by 3% in the quarter, driven by better performance in Greater China.
P&G’s volume increased by 1% despite challenges such as the U.S. port strike, Hurricane Milton, and a two-week outage of its global transportation management system. The company noted weaker demand for its products following years of price increases, with the U.S. consumer behavior described as volatile.
The baby, feminine, and family care division reported a 4% volume increase, while the grooming segment, fabric and home care division, and health-care segment saw volume growth of 2%, 1%, and remained flat, respectively. However, the beauty division experienced a decline in volume, particularly in hair-care products in Greater China and skin-care products globally.
P&G reaffirmed its fiscal 2025 forecast, expecting core net earnings per share in the range of $6.91 to $7.05 and revenue growth of 2% to 4%.
