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P&G posts modest sales growth in ‘challenging, volatile’ environment

P&G headquarters
P&G said it expects growth to accelerate (Source: Bigstock)

The Procter & Gamble Company (P&G) has recorded a slight improvement in organic sales for the third quarter.

For the three months ended March 31, the company’s net global sales fell 2 per cent to US$19.8 billion.

Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, increased 1 per cent, driven by higher pricing. Mix and organic volume had a neutral impact on sales.

Jon Moeller, chairman, president and CEO said the company delivered modest organic sales growth despite a “challenging and volatile consumer and geopolitical environment”.

By segment, organic sales increased 2 per cent for beauty, 3 per cent for grooming and 4 per cent for health care.

The fabric and home care segment remained flat, while the baby, feminine and family care segment dropped 1 per cent.

On the bottom line, operating cash flow was $3.7 billion and net earnings were flat at $3.79 billion.

P&G now expects all-in sales for FY25 to be approximately in-line with the prior year and organic sales growth of approximately 2 per cent.

 “We’re making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects for our brands and the markets where we compete,” added Moeller.

Last year, P&G named Neal Reed as SVP and MD for Australia and New Zealand.

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