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Procter & Gamble beats Q1 earnings estimates, revenue falls short

Published 10/18/2024, 07:16 PM
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Investing.com -- Consumer goods giant Procter & Gamble (NYSE:PG) reported first-quarter fiscal 2025 earnings that exceeded analyst expectations, while revenue fell slightly short. The company maintained its full-year guidance, and its stock edged up 0.4% following the announcement.

P&G posted adjusted earnings per share of $1.93, surpassing the analyst consensus of $1.90. However, revenue came in at $21.7 billion, below the expected $22.02 billion and down 1% from the same quarter last year. Organic sales, which exclude the impacts of foreign exchange and acquisitions/divestitures, increased by 2% YoY.

The company maintained its fiscal 2025 outlook, projecting all-in sales growth of 2% to 4% and organic sales growth of 3% to 5%. P&G also reiterated its core earnings per share growth forecast of 5% to 7%, equating to a range of $6.91 to $7.05 per share.

Jon Moeller, Chairman, President and CEO, commented, "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."

P&G's Beauty segment saw a 2% decline in organic sales, while Grooming and Health Care segments grew by 3% and 4%, respectively. Fabric & Home Care increased by 3%, and Baby, Feminine & Family Care remained flat.

The company expects a commodity cost headwind of approximately $200 million after tax for fiscal 2025, translating to a $0.08 per share impact. Foreign exchange is now anticipated to be neutral.

P&G continues to project an adjusted free cash flow productivity of 90% and plans to pay around $10 billion in dividends while repurchasing $6 to $7 billion of common shares in fiscal 2025.

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