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Procter & Gamble Co. (PG, Financials) shares climbed 3.03% to $166.58 as of 11:11 a.m. GMT-5 Wednesday after the company reported stronger-than-expected fiscal second-quarter results.
Driven by 3% organic sales increase, net sales for the quarter came at $21.9 billion, up 2% year-over-year.
The lack of a non-cash impairment charge noted in the preceding quarter helped the business to generate diluted profits per share (EPS) of $1.88, a 34% rise from the year before. Core EPS also increased 2% to $1.89. While P&G paid $4.9 billion back to investors via dividends and share buybacks, operating cash flow for the quarter came to $4.8 billion.
Resilience was shown in sales performance across many categories; Fabric & Home Care and Baby, Feminine & Family Care each showed 3% organic sales increase. Health Care climbed 3%; Beauty and Grooming added 2%.
Forecasting 2-4% all-in sales growth and 5-7% core EPS growth, the business maintained its fiscal 2025 guidanceequating to $6.91-$7.05 per share. Expected to lower EPS by $0.20 are cost headwinds including $200 million from commodities and $300 million from negative foreign exchange values.
Rising input prices and reinvestments impacted on margins; P&G stressed innovation, premium product positioning, and regional mix as drivers of growth. With capital expenses expected at 45% of yearly net sales, adjusted free cash flow productivity came out to be 84%.
This article first appeared on GuruFocus.