Procter & Gamble (P&G) has reported its Q1 results for fiscal year 2025 revealing a 1% decline in net sales to US$21.7 billion, with varied performance between key product segments. Organic sales, which exclude the effects of foreign exchange, acquisitions, and divestitures, grew by 2%.

The Beauty segment saw a 2% decline in organic sales, largely due to a 20% decline in organic sales in Skin Care, which the company attributed to volume due to volume declines and lower sales of the super-premium SK-II brand. Hair Care organic sales increased in low single digits, while Personal Care organic sales were up by high single digits.

Meanwhile the Grooming and Health Care segments reported growths of 3% and 4%, respectively. In Health Care, Oral Care organic sales increased in low single digits and Personal Health care organic sales increased in mid-single digits thanks to the growth of respiratory products and increased pricing.

The Fabric & Home Care segment also increased by 3%, with Fabric Care in the low single digits and Home Care increasing in the mid single digits.

Organic sales in the Baby, Feminine & Family Care segment remained unchanged, with Baby Care organic sales decreased in the mid single digits, offset by low single digit growth in Feminine Care organic sales. Family Care organic sales increased in mid single digits.

“Our organic sales growth, earnings and cash results in the first quarter keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year,” said Chairman of the Board, President and Chief Executive Officer, Jon Moeller. “We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization. We have confidence this remains the right strategy to deliver balanced growth and value creation.”

Diluted earnings per share (EPS) were $1.61, down 12% year-over-year, primarily due to higher non-core restructuring charges. However, core EPS increased by 5% to $1.93. Operating cash flow was reported at $4.3 billion with net earnings of $4.0 billion for the quarter.

The company is undergoing restructuring efforts in certain markets, particularly Argentina, which resulted in significant restructuring charges. For fiscal year 2025, P&G maintained its sales growth guidance in the range of 2-4%, with an expectation for organic sales growth between 3-5%. The diluted net EPS growth guidance remains at 10-12%.

The company expects commodity costs to pose a headwind of approximately $200 million, which translates to about $0.08 per share. P&G returned nearly $4.4 billion to shareholders, consisting of over $2.4 billion in dividends and $1.9 billion in share repurchases.

P&G reported an adjusted free cash flow productivity of 82%, reflecting operational efficiency in generating cash. The company emphasized its integrated growth strategy and commitment to delivering balanced growth and value creation for its stakeholders.