P&G Reports Mixed Results Amid Falling Demand and Price Hikes

Compton, California — Procter & Gamble Co. reported mixed quarterly results on Thursday, as demand for its well-known products fell and the company issued a dimmer outlook for the upcoming quarter.

The maker of Tide and Charmin slashed its forecast for core earnings per share and revenue during its final fiscal quarter. CEO Jon Moeller attributed the changes to uncertainty in the market and the company’s plans to invest in its brands to improve performance.

Moeller explained on CNBC that while Procter & Gamble produces many products domestically, President Donald Trump’s tariffs might increase operational costs. He stated, “There will likely be pricing — tariffs are inherently inflationary — but we’re also looking at sourcing options.”

He noted that any price increases related to tariffs would likely take place in the next fiscal year, beginning in July. As a result of this news, shares of Procter & Gamble fell more than 1% in premarket trading.

For the latest quarter, Procter & Gamble reported net sales of $19.78 billion, down 2% from the previous year. Analysts had expected better performance, particularly in organic sales which rose by only 1%.

The volume of products sold declined by 1%, indicating a softening demand. The company’s baby, feminine, and family care segments reported a steep 2% decrease in volume, affecting products like Pampers and Bounty. Health care and fabric/home care divisions also saw a 1% drop in volume.

Demand for oral care items like Oral-B and Crest declined, as did sales of home care products such as Cascade and Swiffer. Meanwhile, the beauty segment, which includes brands like Olay and SK-II, reported stagnant volume growth.

Procter & Gamble also noted a decline in volume in Greater China, which is its second-largest market, impacted by high import duties. The only segment to show growth was grooming products, including Gillette razors, which increased by 1%.

As the fiscal year nears conclusion, Procter & Gamble now expects flat sales growth for fiscal 2025, a drop from the previous forecast of 2% to 4% growth. Additionally, the company revised its core earnings per share outlook to a range of $6.72 to $6.82, down from the earlier range of $6.91 to $7.05.

For the third quarter, Procter & Gamble reported a net income of $3.77 billion, or $1.54 per share, compared to $3.75 billion or $1.52 per share a year ago.

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