The reported gross margin in Q3 FY25 decreased 20 basis points (bps), and core gross margin for the quarter decreased 30 bps versus the prior year and on a currency-neutral basis decreased 10 bps.
Procter & Gamble (P&G) has reported Q3 FY25 net sales of $19.8 billion, down 2 per cent YoY, while organic sales rose 1 per cent.
Diluted and core EPS grew 1 per cent to $1.54.
Gross margin declined, impacted by unfavourable mix and costs.
P&G forecasts flat all-in sales and 2 per cent organic sales growth for Q4, and 2-4 per cent FY25 core EPS growth.
Benefits from gross productivity savings of 160 bps and increased pricing of 30 bps were more than fully offset by 120 bps of unfavourable mix, 40 bps of product reinvestments, 30 bps of unfavourable commodity costs and 10 bps of rounding and other items.
The diluted and core net earnings per share (EPS) were $1.54, an increase of 1 per cent versus prior year.
Baby, Feminine and Family Care segment organic sales decreased one per cent YoY. Baby care organic sales decreased low single digits due to volume declines, partially offset by favourable geographic and product mix.
Feminine care organic sales remained unchanged as favourable geographic mix was offset by volume declines. Family Care organic sales decreased low single digits driven by volume declines, unfavourable product mix and merchandising investments.
“We delivered modest organic sales and EPS growth this quarter in a challenging and volatile consumer and geopolitical environment,” said Jon Moeller, chairman of the board, president and chief executive officer (CEO) at P&G. “We are making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects for our brands and the markets where we compete. 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 are maintaining investments in superior innovation across price tiers to improve value for consumers and drive category growth.”
For Q2 FY25, P&G expects all-in sales to remain consistent with the prior year, with organic sales projected to grow by approximately two per cent YoY.
The company updated FY25 diluted net earnings per share (EPS) growth guidance to be in the range of 6 to 8 per cent. The company now expects FY25 core EPS growth to be in the range of $6.72 to $6.82 per share, which equates to 2 to 4 per cent YoY growth. P&G now expects capital spending to be in the range of 4 to 5 per cent of FY25 net sales.
Fibre2Fashion News Desk (SG)
