0.2%! P&G’s Profit Growth Slows Down

Among its categories, Fabric Care achieved low-single-digit growth, primarily driven by volume gains in Europe and product portfolio optimization—though part of this growth was offset by increased promotional spending in North America. Home Care posted a low-single-digit decline, mainly due to lower volumes in North America; however, price increases partially compensated for the shortfall. Net sales for Health Care, Baby, Feminine & Family Care, and Grooming in April–June were $2.757 billion, $5.049 billion, and $1.699 billion (approximately RMB 18.668 billion, RMB 34.188 billion, and RMB 11.504 billion), respectively. Beauty’s net sales for April–June totaled $3.975 billion (approximately RMB 26.916 billion), up 6% year-on-year. Hair Care achieved mid-single-digit growth, supported by volume gains in Asia-Pacific and Europe, as well as innovative pricing strategies in Latin America and Asia-Pacific. Personal Care also delivered mid-single-digit growth, with volume increases across all regions—and further boosted by price increases in North America. Skincare’s organic sales were flat year-on-year. A favorable product mix—led primarily by strong growth of the ultra-premium brand SK-II—provided a positive contribution, but this was offset by declining volumes in Greater China. According to publicly available data, during the 2026 “618” shopping festival, SK-II ranked fifth on Tmall’s full-cycle Beauty Top List. On JD.com, SK-II not only entered the Top 10 Beauty Brand Sales Ranking, but its flagship product “Facial Treatment Essence” (“Miracle Water”) also appeared on JD.com’s “Top 100 Core Bestsellers” list, with transaction value doubling year-on-year. Third-party data platforms indicate SK-II’s sales on major e-commerce platforms amounted to RMB 220 million, RMB 1.049 billion, and RMB 433 million in April, May, and June, respectively. Although SK-II surged into the Top 5 during 618, Greater China remains a drag. P&G’s beauty ambitions are both enabled—and hindered—by China. Looking ahead to fiscal year 2027, P&G expects overall sales to grow 1%–3% year-on-year; organic sales (excluding currency and acquisition impacts) are likewise projected to rise 1%–3%. P&G notes that this organic sales growth outlook already incorporates a modest 30–50 basis-point headwind attributable to adjustments in brands, product formats, and marketing strategies. Srikanth Jayakumar stated: “Despite ongoing market volatility, we remain confident in making progress across key metrics. The best path to sustainable, balanced growth is to double down on our existing strategy—with consumers at the center. We are confident in our plan to accelerate growth quarter-by-quarter, and will fund these investments through a robust productivity program.” On profitability, P&G forecasts diluted earnings per share (EPS) for FY2027 to increase 1%–5% versus FY2026’s $6.62 (approx. RMB 44.83). Excluding non-core items such as restructuring, core EPS is expected to range from $6.89 (approx. RMB 46.65) to $7.11 (approx. RMB 48.14)—i.e., flat to +3% versus FY2026’s $6.89 (approx. RMB 46.65).

Analysis of P&G’s Fiscal Year 2025 Performance

In Q2 of FY2025, P&G’s net sales reached $21.9 billion, up 2% year-on-year, with organic growth of 3%—the strongest quarterly organic growth in the past nine quarters—and net income rose 33% year-on-year. However, in Q3, net sales declined 2% to $19.8 billion—the first year-on-year decline in Q3 in eight years. Fortunately, Q4 performance exceeded expectations: net sales grew 2% to $20.89 billion; net income totaled $3.62 billion; and earnings per share (EPS) reached $1.48—both above market expectations. 4. Performance by Business Segment P&G’s operations are organized into five major segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. ① Beauty Full-year net sales declined 2%. In Q4, organic sales rose 1%, though performance varied across subcategories: Hair Care saw mixed regional results (gains in some markets, declines in others), while Skincare experienced opposing volume trends in Greater China and North America. ② Grooming Full-year net sales were flat. In Q4, organic sales rose 1%, driven by innovative pricing—but appliance unit sales declined. ③ Health Care Full-year net sales rose 2%. In Q4, organic sales increased 2%, with gains in Oral Care and Personal Health Care, supported by premium innovation and pricing strategies. ④ Fabric & Home Care Full-year net sales were flat. In Q4, organic sales rose 1%, with growth in both Fabric Care and Home Care in select markets. ⑤ Baby, Feminine & Family Care Full-year net sales were flat. In Q4, organic sales rose 1%, with Baby Care volumes declining, Feminine Care benefiting from pricing and product mix improvements, and Family Care achieving growth via volume gains. 5. Market Performance and Competitive Landscape Performance varied significantly across markets. Greater China—the company’s second-largest market—saw growth in certain categories, yet continues facing challenges: geopolitical impacts on core brands have gradually subsided, but macroeconomic conditions continue affecting consumer spending.

P&G Forecasts Muted 2027 Growth Amid Tighter Spending and Rising Costs

Jul 29, 2026

Procter & Gamble lowered its fiscal 2027 revenue growth forecast to 1-3%, citing challenging economic conditions and higher raw material and energy costs linked to oil prices. Shares fell 3% following the announcement.

reuters

2026-07-29

P&G Forecasts Muted 2027 Growth Amid Tighter Spending and Rising Costs

P&G Forecasts Muted 2027 Growth Amid Tighter Spending and Rising Costs

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