Due to the small price increase and the drag from weak performance in key areas such as skin care and baby care, $Procter & Gamble (PG.US)$ Second consecutive quarter of weak sales growth. The financial report shows that procter & gamble's revenue in the first quarter of fiscal year 2025 was 21.737 billion US dollars, a 0.6% year-on-year decrease, below market expectations; adjusted eps was 1.93 US dollars, exceeding market expectations of 1.90 US dollars.

In the first fiscal quarter ending on September 30th, Procter & Gamble's organic sales increased by 2%. Analysts had previously expected growth of nearly 2.1%. Procter & Gamble's prices during this period averaged a 1% increase, the same as the previous quarter, significantly lower than the increase in the same period last year.

The unexpected decline in the company's beauty product category was mainly driven by skincare products, with a significant decrease in sales and volume, attributed to the weak performance of its high-end brand SK-II sold in China. Procter & Gamble's fabric and home care products (including Tide laundry detergent) performed better than expected despite an increase in sales, partially offsetting this decline.

The financial report shows that compared to the previous quarter, the company's performance has stabilized, with growth significantly lower than Wall Street's expectations in the previous quarter. The company reiterated its revenue and profit targets for this fiscal year, including achieving up to 5% organic sales growth, indicating an expected acceleration in growth over the next few quarters.

Facing Challenges in Growth.

Chief Financial Officer Andre Schulten stated in an interview: "Revenue this quarter was relatively weak." He also mentioned that weakness in China and the Middle East has also impacted performance. The Middle East conflict has triggered resistance and weakened consumption. "These two factors are indeed headwinds here, but the core business remains strong," said Schulten.

Procter & Gamble has always aimed to enhance performance through high-end products such as full-body deodorants and razors suitable for different body parts. New products and functions provide greater flexibility at higher prices. Schulten stated that more expensive products like the Oral-B electric toothbrush are performing well, and Procter & Gamble is launching a new low-priced version to attract more consumers.

Despite unfavorable commodity costs, the gross margin adjusted for the first quarter still meets expectations.

Although the rate of price increase has significantly slowed down, Schulten stated that he does not believe prices will start to decrease. "Cost changes will not impact us or the entire industryTherefore, events like the 9/11 attacks, the COVID-19 pandemic, and the Russia-Ukraine conflict have all driven significant increases in the price of gold, as investors seek stability during turbulent times.adjustment," he said.