Q1 2025 Procter & Gamble Co Earnings Call Transcript
Key Points
- Procter & Gamble Co (PG) reported a 2% growth in organic sales, maintaining its guidance ranges for fiscal year 2025.
- North America showed strong performance with a 4% growth in organic sales, driven by volume growth and broad-based market share gains.
- Core earnings per share increased by 5% to $1.93, with a strong productivity improvement of 230 basis points.
- The company returned nearly $4.4 billion of cash to shareholders, including $2.4 billion in dividends and $1.9 billion in share repurchases.
- Procter & Gamble Co (PG) is focusing on innovation and superiority across its product lines, which is expected to drive future growth.
- Organic sales in Greater China declined by 15%, with ongoing brand-specific headwinds, particularly affecting the SK-II brand.
- The Asia-Pacific, Middle East, and Africa regions experienced soft market conditions, with organic sales down in low single digits.
- The company faces a $200 million after-tax headwind from commodity costs, impacting its fiscal 2025 outlook.
- There is concern about potential deceleration in markets where Procter & Gamble Co (PG) had previously shown strength, such as the US and Europe.
- The baby care segment is under pressure due to declining birth rates, and the company needs to innovate to regain growth in this category.
Good morning, and welcome to Procter & Gamble's quarter-end conference call. Today's event is being recorded for replay.
This discussion will include a number of forward-looking statements. If you will refer to P&G's most recent 10-K, 10-Q, and 8-K reports, you will see a discussion of factors that could cause the company's actual results to differ materially from these projections.
As required by Regulation G, Procter & Gamble needs to make you aware that during the discussion, the company will make a number of references to non-GAAP and other financial measures. Procter & Gamble believes these measures provide investors with useful perspective on underlying business trends, and has posted on its Investor Relations website, www.pginvestor.com, a full reconciliation of non-GAAP financial measures.
Now I will turn the call over to P&G's Chief Financial Officer, Andre Schulten.
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