The Procter & Gamble Company (P&G) has announced a jump in net earnings for the fourth quarter (Q4) and the 2025 financial year (FY25) as cost reductions offset weak sales revenue.
The American consumer products giant said net earnings were US$3.615 billion (A$5.543 billion) in Q4, 15% higher than $3.137 billion in the previous corresponding period (pcp).
Diluted earnings per share (EPS) soared 17% to $1.48 on net sales which grew just 2% to $20.889 billion in the final quarter of FY25.
For the full financial year, net earnings increased 7% to $15.975 billion and diluted EPS rose 8% to $6.51 on net sales which were flat at $84.284 billion.
The company returned more than $16 billion to shareholders in FY25 via dividends and share repurchases.
“We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment,” Chairman, President and Chief Executive Officer Jon Moeller said in a press release.
The company said the lift in FY25 EPS was the result of a reduction in selling, general and administrative costs and a non-cash impairment charge in the prior year and despite higher non-core restructuring charges in the current year.
It said the increase in Q4 EPS was driven mainly by higher restructuring charges in the prior year related to the substantial liquidation of operations in markets including Nigeria.
P&G forecasts sales growth of 1%-5%, diluted net EPS growth of 3%-9%, and core EPS growth of 0%-4% in FY26.
“In fiscal 2026, we expect to deliver another year of organic sales growth, Core EPS growth and strong adjusted free cash flow productivity,” Moeller said.
The Q4 results were better than expected with revenue of $20.89 billion above analysts' estimates of $20.82 billion.
P&G shares (NYSE:PG) closed 50 cents (0.32%) down at $156.61 on Tuesday (Wednesday AEST), capitalising the company at $367.18 billion, before easing further to $156.36 in after-hours trade.
Founded in 1837, P&G sells personal care and hygiene products including Olay skincare products, Pantene and Head & Shoulders shampoo, Gillette razors, Oral-B oral care products, Vicks cough and cold remedies and Pampers nappies in 180 countries.
