Procter & Gamble (NYSE:PG) just kicked off fiscal 2025 with a mixed bag, reporting $21.7 billion in net salesdown 1% year-over-yearbut managing to squeeze out a 2% gain in organic sales thanks to higher pricing and stable volumes. Core EPS climbed 5% to $1.93, showing the company's resilience, while diluted EPS took a 12% hit, dragged down by restructuring costs tied to shutting down operations in Argentina. Despite these hurdles, P&G is holding the line on its full-year outlook, underscoring confidence in its balanced growth strategy amid today's economic turbulence.

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Diving into the segments, Fabric & Home Care and Health Care outperformed with growth, but Beauty struggled, slipping 5% as demand for the premium SK-II brand lagged, especially in China. Yet, P&G kept cash flowing back to investors, returning nearly $4.4 billion through dividends and share buybacks. With cash flow productivity steady at 82%, the company is doubling down on shareholder rewards, even as market conditions stay unpredictable.

Looking forward, P&G reaffirmed its guidance for 2-4% sales growth and a 5-7% rise in core EPS for the year, signaling confidence in its strategy to push innovation and brand superiority. While higher commodity costs could weigh on margins, foreign exchange is expected to have a neutral impact. As economic uncertainties loom, P&G's laser focus on productivity and agility will be crucial to sustaining shareholder value and navigating market shifts.

This article first appeared on GuruFocus.