P&G reaffirms full-year guidance despite Q1 sales drop

Procter & Gamble (P&G) has maintained its guidance for FY25, despite a 1% decrease in first quarter sales to £16.6 billion ($21.7 billion).

Organic sales, which exclude the impacts of foreign exchange, acquisitions and divestitures, increased 2% during the quarter.

For Q1, P&G shared the following category results:

The owner of Olay, Pantene and Gillette saw beauty segment sales decline 2% during the first quarter, spanning July-September 2024.

Hair care sales increased low-single-digits, driven by volume growth and favourable premium product mix in North America, Europe and Latin America. In addition, personal care sales were driven by innovation-based volume growth and favourable product mix.

However, skin care sales dropped more than 20% during the first quarter of FY25. This was attributed to volume declines and unfavourable mix from lower sales of Japanese super-premium brand SK-II.

Grooming segment sales lifted 3%, with innovation-driven volume growth partially offset by unfavourable geographic mix.

Meanwhile, the baby, feminine and family care segment remained unchanged versus a year ago and sales in the health care segment increased 4%, with oral care sales up low-single-digits.

Looking ahead, P&G maintained its guidance for FY25 sales, with growth to be in the range of 2-4% versus the prior year. It also maintained its outlook for organic sales growth to be in the range of 3-5%.

Jon Moeller, Chairman, President and Chief Executive Officer of P&G, said: "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 organisation.

"We have confidence this remains the right strategy to deliver balanced growth and value creation."