PROCTER & GAMBLE Co SEC 10-Q Report

Procter & Gamble Co, a global leader in consumer goods, has released its Form 10-Q report for the third quarter, detailing significant financial and operational performance metrics. The report highlights the company's continued growth in net sales, strategic investments, and future outlook amidst a competitive market landscape.

Financial Highlights

• Net Sales: $22,386 million, an increase of 3% compared to the prior year period, driven by higher pricing, favorable mix, and favorable foreign exchange.
• Gross Margin: 51.4%, a decrease of 70 basis points due to unfavorable product mix, product and packaging investments, and higher costs from tariffs.
• Operating Income: $5,856 million, an increase of 1% from the prior year period, with operating margin decreasing by 50 basis points to 26.2% due to the decrease in gross margin.
• Net Earnings: $4,781 million, an increase of 20% from the prior year period, primarily due to higher restructuring charges in the prior year.
• Net Earnings Attributable to Procter & Gamble: $4,750 million, an increase of 20% from the prior year period.
• Diluted EPS: $1.95, an increase of 21% due to the increase in net earnings.
• Core EPS: $1.99, an increase of 3% excluding incremental restructuring charges.
• Operating Cash Flow: $5,408 million, reflecting strong cash generation and efficiency improvements.

Business Highlights

• Revenue Segments:
  • The Beauty segment saw a 6% increase in net sales, driven by a 4% increase in unit volume and 2% pricing gains, partially offset by a 1% unfavorable product mix.
  • Grooming net sales rose by 5%, with a 4% increase in pricing and a 1% increase in unit volume.
  • Health Care net sales increased by 2%, supported by favorable product mix and pricing.
  • Fabric & Home Care and Baby, Feminine & Family Care segments each experienced a 1% increase in net sales, driven by favorable foreign exchange impacts.
• Geographical Performance:
  • The company experienced growth in Europe and Latin America, particularly in the Beauty and Grooming segments, due to innovation and increased distribution.
  • However, there were declines in certain regions such as IMEA for Grooming and Europe for Fabric Care, attributed to competitive activity and market contraction.
• Sales Units:
  • Unit volume increased in the Beauty segment by 4%, driven by growth in Europe and Latin America.
  • Grooming saw a 1% increase in unit volume, with growth in Latin America offset by declines in IMEA.
  • Health Care experienced a 2% decline in unit volume, with decreases across most regions except for Latin America.
• New Product Launches: The company introduced innovation-driven pricing in the Beauty and Grooming segments, particularly in North America and Europe, contributing to sales growth.
• Future Outlook: The company plans to continue its portfolio and productivity plan, expecting to incur $1.5 to $2.0 billion in restructuring costs over two years to streamline operations and improve competitiveness. The restructuring includes a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027.

SEC Filing: PROCTER & GAMBLE Co [ PG ] - 10-Q - Oct. 24, 2025