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 ...

Procter & Gamble (PG) came out with quarterly earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $1.84 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.08%. A quarter ago, it was expected that this world's largest consumer products maker would post earnings of $1.90 per share when it actually produced earnings of $1.93, delivering a surprise of 1.58%.Over the las ...