Introduction
Dear Shareowners,
P&G delivered continued organic sales and core earnings-per-share growth and returned significant cash to shareowners in fiscal year 2025, despite volatile macro-economic, geopolitical and consumer headwinds.
Organic sales for the fiscal year grew 2%. Core earnings per share grew 4%. On a currency-neutral basis, core earnings per share were also up 4%. Adjusted free cash flow productivity was 87%.
The last quarter was our 39th consecutive quarter of top-line growth. Fiscal 2025 was our ninth consecutive year of core earnings-per-share growth.
Growth was broad-based across categories and regions.
Nine of 10 product categories grew organic sales for the year. Family Care and Personal Health Care each grew mid-single digits. Fabric Care, Home Care, Feminine Care, Hair Care, Grooming, Oral Care, and Skin & Personal Care were up low single digits. Baby Care was down low single digits.
Focus markets grew 2% for the year, with North America up 2% and Europe Focus markets up 3%.
Enterprise markets were up 2%, led by Latin America with 4% organic sales growth.
E-commerce sales increased 12%, now representing 19% of Company total.
Thirty of our top 50 category/country combinations held or grew share for the year. Seven of 10 product categories held or grew share globally over the past year.
On the bottom line, we delivered 4% core earnings-per-share growth despite the higher costs from commodities and tariffs we faced throughout the year.
Fiscal Year 2025 by the Numbers
We increased our dividend by 5% and returned over $16 billion of cash to shareowners through nearly $10 billion in dividends and $6.5 billion in share repurchase — consistent with our guidance at the start of the year. This is the 69th consecutive annual dividend increase, and the 135th consecutive year P&G has paid a dividend.
In summary, sales and earnings growth and strong cash return in a challenging economic and geopolitical environment. While not at the levels we aspired to deliver at the beginning of the year, growth in this dynamic and volatile environment is worth acknowledging.
Looking ahead, the opportunities for growth and value creation are significant. For example, there are opportunities to better meet the needs among currently unserved and underserved consumers, expand into new segments and grow markets to best-in-class levels. Positioning ourselves to best capture these growth opportunities benefits from disciplined execution of our integrated growth strategy, with a focus on driving category growth and value creation.
However, the world continues to change in dynamic and volatile ways. Category growth rates in many parts of the world are slowing. Consumers face greater uncertainty. Competition is fierce. The geopolitical environment is unpredictable. And technology is rapidly transforming nearly every aspect of daily life.
To meet these opportunities and challenges, we need to widen our margin of advantage. This requires even greater focus on strengthening each component of our integrated strategy, which has enabled strong results, to capture the opportunities it creates. This is the path P&G is on.
VARIOUS STATEMENTS IN THIS ANNUAL REPORT, including estimates, projections, objectives and expected results, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are generally identified by the words “believe,” “expect,” “anticipate,” “intend,” “opportunity,” “plan,” “project,” “will,” “should,” “could,” “would,” “likely” and similar expressions. Forward-looking statements are based on current assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements, including the risks and uncertainties discussed in Item 1A – Risk Factors of the Form 10-K included in this Annual Report. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise publicly any forward-looking statements, except as required by law.