Procter & Gamble on Wednesday reported quarterly earnings and revenue that beat analysts’ expectations, thanks to better sales in the U.S. and China, its two largest markets.
Shares of the company rose more than 3% in morning trading.
Here’s what the company reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.88 vs. $1.86 expected
- Revenue: $21.88 billion vs. $21.54 billion expected
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, which excludes currency changes and divestments, increased 3% in the quarter, boosted by improved performance in Greater China. Organic sales in Greater China were down just 3%, compared with a 15% decline last quarter.
“I want to be clear: I don’t think China is out of the woods. This will continue to be difficult. This will continue to be volatile … But it’s good to see the trend going more positive,” CFO Andre Schulten told analysts on the company’s conference call.
P&G’s volume grew 1% during the period, despite setbacks that included the U.S. port strike, Hurricane Milton and a two-week outage of its global transportation management system. Volume excludes pricing, which makes it a more accurate reflection of demand than sales.
Like many consumer companies, P&G has seen weaker demand for its products after several years of price hikes. Schulten described the U.S. consumer as “volatile,” after shoppers stocked up on household staples before the port strike in October, used up the stockpile through November and then bought more in December. But excluding those challenges, he said that the U.S. and European consumer is generally stable.
The company’s baby, feminine and family care division reported the biggest increase in volume, with a 4% jump. P&G credited its family care and feminine care brands, which include its Charmin, Puffs and Tampax products. But baby care organic sales slid by low single digits, as fewer parents bought Pampers diapers.
P&G’s grooming segment, which includes Gillette razors, saw volume rise 2% in the quarter. The company said innovation fueled the increase in volume.
The company’s fabric and home care division reported a volume increase of 1%. The segment includes Tide, Swiffer and Cascade products.
P&G’s health-care segment, which includes Pepto Bismol and Oral-B products, reported flat volume.
Only P&G’s beauty division posted shrinking volume for the quarter. The company said that volume for its hair-care products declined in its Greater China market, and its skin-care segment, which includes Olay products, saw global volume decrease. Overall, the company’s beauty division saw volume fall 1%.
P&G also reiterated its fiscal 2025 forecast. It anticipates core net earnings per share in a range of $6.91 to $7.05 and…
Read More: Procter & Gamble (PG) Q2 2025 earnings
