P&G reports 20% profit increase for the first quarter of its fiscal 12 months, halves tariff impact

US firm Procter & Gamble (P&G) started its fiscal 12 months with attributable internet profit of 4,750 million {dollars} (4,093 million euros) between July and September, its first quarter, representing a 20% increase on the profit recorded in the identical interval of the earlier 12 months, based on the proprietor of manufacturers corresponding to Gillette and Pantene, which has halved the beforehand anticipated opposed impact of tariffs.

P&G’s internet gross sales in the quarter have been $22.386 billion (19.29 billion euros), a 3% year-on-year increase on a reported foundation, whereas natural progress (which excludes the results of overseas change and acquisitions and divestitures) was 2%, together with a 1% increase in costs.

Between July and September, the enterprise’ Beauty division generated gross sales of 4,143 million {dollars} (3,570 million euros), up 6% 12 months on 12 months, whereas gross sales reached 1,817 million {dollars} (1,566 million euros) in the Grooming section, up 5%.

Meanwhile, the Health Care division posted gross sales of 3,220 million {dollars} (2,775 million euros), up 2%, and the Home Care division grew 1% to 7,793 million {dollars} (6,715 million euros). The Baby, Feminine, and Family Care section recorded gross sales of 5,171 million {dollars} (4,456 million euros), a 1% year-on-year increase.

“These results keep us on track to meet our forecast ranges on all key financial metrics for the fiscal year, in a challenging geopolitical and consumer environment,” mentioned Jon Moeller, P&G’s chairman and CEO.

For the present fiscal 12 months as a complete, the multinational stays assured of attaining gross sales progress in the vary of 1% to five%, anticipating a tailwind from overseas change, acquisitions and divestitures including roughly one share level to complete gross sales progress.

The firm additionally maintained its outlook for natural gross sales progress in the vary of 3% to 9%.

Separately, P&G maintained its forecast for progress in diluted internet earnings per share in fiscal 2026 of 3% to 9%, in contrast with diluted internet earnings per share of $6.51 in fiscal 2025.

In addition, P&G now expects a headwind linked to uncooked materials prices of roughly 100 million {dollars} (86 million euros) after tax and an increase in tariff prices of roughly 400 million {dollars} (345 million euros) for fiscal 2026, half of what was anticipated in July, in addition to a internet damaging impact of roughly 250 million {dollars} (215 million euros) after tax because of internet curiosity expense.

At the identical time, the firm continues to count on beneficial change charges to end in a constructive after-tax impact of roughly 300 million {dollars} (259 million euros).