Procter & Gamble (PG) reported strong first-quarter fiscal 2027 results, with net sales reaching $23.3 billion, a 4.0% increase driven by growth across all business segments. Organic sales also rose by 4.0%, fueled by volume increases and a shift toward premium product offerings. Core earnings per share (EPS) increased by 1% to $2.00, though higher operating costs partially offset the top-line growth.
The company's beauty, grooming, and fabric and home care segments each saw organic sales growth of 5.0%, while the health care and baby, feminine, and family care segments grew by 3.0%. Greater China stood out with an 8.0% organic sales increase, led by strong performance from SK-II and Pampers. However, P&G faced a $1.4 billion after-tax commodity cost headwind, primarily due to higher oil prices.
P&G maintained its full-year organic sales and earnings guidance but raised its all-in sales outlook to reflect the acquisition of Thorne. The company plans to offset cost headwinds through productivity initiatives and innovation-based pricing. Chief Financial Officer Andre Schulten warned of potential risks from persistent high fuel and energy costs, which could impact consumer demand.
Additional highlights include a 93% free cash flow productivity, with $5.8 billion in operating cash flow and $4.8 billion in net earnings. P&G returned $2.6 billion to shareholders through dividends and repurchased $1.3 billion in common stock, targeting a total cash return of $15 billion for fiscal 2027.