The Procter & Gamble Company (P&G) has reported an increase in net sales of 2% for the second quarter of fiscal year 2025, reaching $21.9 billion. Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, also saw an increase of 3% compared to the prior year.
Diluted net earnings per share experienced a significant uptick, rising by 34% to $1.88, while core earnings per share also saw a 2% increase compared to the prior year. Operating cash flow for the quarter was reported at $4.8 billion, with net earnings totaling $4.7 billion.
P&G returned over $4.9 billion of cash to shareholders through $2.4 billion in dividend payments and $2.5 billion in share repurchases during the quarter.
The company's fiscal year 2025 guidance remains steady, with P&G maintaining its outlook for all-in sales growth in the range of two to four percent versus the prior year. Organic sales growth is expected to be in the range of three to five percent.
P&G also maintained its guidance for diluted net earnings per share growth to be in the range of 10% to 12% versus fiscal 2024, and core earnings per share growth in the range of five to seven percent versus the prior year.
Looking ahead, the company expects a commodity cost headwind of approximately $200 million after tax for fiscal 2025, with unfavorable foreign exchange rates projected to be a headwind of approximately $300 million after tax. Additionally, P&G anticipates a core effective tax rate to be in the range of 20% to 21% for fiscal 2025.
Capital spending is estimated to be in the range of four to five percent of fiscal 2025 net sales, with P&G expecting adjusted free cash flow productivity of 90% and planning to pay around $10 billion in dividends while repurchasing $6 to $7 billion of common shares in fiscal 2025. As a result of these announcements, the company's shares have moved 2.2% on the market, and are now trading at a price of $165.33. If you want to know more, read the company's complete 8-K report here.
