Procter & Gamble (P&G) has made impressive strides in its financial goals, reporting net sales of $21.9 billion for the quarter that wrapped up on December 31. This marks a 2% increase compared to the same quarter last year.
Beauty Division Performance
After adjusting for factors such as foreign exchange effects and shifts related to acquisitions and divestitures, organic sales for the second quarter of fiscal year 2025 climbed by 3%. A notable highlight was P&G’s beauty division, which recorded a 2% growth in organic sales.
The personal care brands within the company stood out, achieving outstanding double-digit growth. P&G credited this progress to their commitment to innovation, particularly with the launch of whole body deodorants under well-known names like Old Spice, Secret, and Native.
Challenges and Recovery in China
In the hair care sector, popular brands such as Head & Shoulders, Pantene, and Aussie saw sales boost in North America, Europe, and Latin America, benefiting from increased volume. However, challenges arose in Greater China, where a decrease in volume tempered overall organic sales growth, limiting it to low single digits. On a brighter note, the skin care division encountered mid-single-digit declines largely due to reduced volume. Yet, the premium SK-II brand’s strong performance offered some balance to those setbacks.
Meanwhile, P&G’s grooming segment, home to well-regarded brands like Braun, Gillette, and The Art of Shaving, experienced a 2% rise in organic sales year-over-year for Q2. This improvement stemmed from introducing innovative products, even though the overall impact was softened by a less favorable geographic sales distribution. In the health care segment, oral care brands such as Crest and Oral-B saw a modest, low single-digit increase in organic sales.
Looking at the regional landscape, a promising recovery is taking shape in Greater China. Organic sales dropped only 3% compared to the previous year, a significant uptick from the 15% decline noted in Q1 2025. P&G views this trend as a hopeful sign of market revival.
Strategic Focus and Future Outlook
Jon Moeller, the Chairman, President, and CEO of P&G, reiterated the company’s focus on an integrated growth strategy. He stressed the significance of a concise product portfolio in daily use categories, ensuring that performance aligns with consumer preferences. This strategy champions excellence across product efficacy, packaging, branding, retail execution, and overall value for both consumers and customers. Such an approach has proven essential for achieving robust performance and nurturing sustainable growth and value.
Source: Cosmeticsbusiness