On this page of StockholderLetter.com we present the latest annual shareholder letter from PROCTER & GAMBLE Co — ticker symbol PG. Reading current and past PG letters to shareholders can bring important insights into the investment thesis.
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8/29/2025 Letter Continued (Full PDF)
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8/25/2023 PG Stockholder Letter
• 8/23/2024 PG Stockholder Letter
• More "Consumer Goods" Category Stockholder Letters
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PG Benford's Law Stock Score = 29
8/29/2025 Letter Continued (Full PDF)
•
8/25/2023 PG Stockholder Letter•
8/23/2024 PG Stockholder Letter•
More "Consumer Goods" Category Stockholder Letters•
PG Benford's Law Stock Score = 29PG Shareholder/Stockholder Letter Transcript:
2025 Annual Report Financial Highlights (Unaudited) 2025 Net Sales by Business Segment 3 Amounts in billions, except per share amounts 2025 2024 2023 2022 2021 Net Sales $84.3 $84.0 $82.0 $80.2 $76.1 Operating Income $20.5 $18.5 $17.8 $18.0 Net Earnings Attributable to P&G Net Earnings Margin Diluted Net Earnings per Common Share 1 Core Earnings per Share 2 Operating Cash Flow Dividends per Common Share $18.1 $16.0 $14.9 $14.7 $14.7 $14.3 19.1% 17.8% 18.0% 18.4% 18.9% $6.51 $6.02 $5.90 $5.81 $5.50 Fabric & Home Care 36% Baby, Feminine & Family Care Beauty 24% 18% Health Care 14% Grooming 8% 2025 Net Sales by Geographic Region North America 4 52% $6.83 $6.59 $5.90 $5.81 $5.66 Europe Latin America 7% $17.8 $19.8 $16.8 $16.7 $18.4 Greater China 7% Asia Pacific 7% $4.08 $3.83 $3.68 $3.52 $3.24 22% India, Middle East & Africa (IMEA) Fiscal Year 2025 by the Numbers +2% +4% 87% Organic Sales Growth Core EPS Growth Adjusted Free Cash Flow Productivity (1) Diluted net earnings per common share are calculated based on net earnings attributable to Procter & Gamble. (2) Core EPS is a measure of the Company s diluted net earnings per common share adjusted for certain items not viewed as part of our sustainable results. Please see page 72 of the Annual Report for detail on the reconciling items. (3) These results exclude net sales in Corporate. (4) North America includes the United States, Canada and Puerto Rico. VARIOUS STATEMENTS IN THIS ANNUAL REPORT, including estimates, projections, objectives and expected results, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are generally identified by the words believe, expect, anticipate, intend, opportunity, plan, project, will, should, could, would, likely and similar expressions. Forwardlooking statements are based on current assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements, including the risks and uncertainties discussed in Item 1A Risk Factors of the Form 10-K included in this Annual Report. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise publicly any forward-looking statements, except as required by law. Certain brand names referenced in this Annual Report are trademarks of The Procter & Gamble Company or one of its subsidiaries. All other brand names are trademarks of their respective owners. Explore the digital version of the P&G 2025 Annual Report at pg.com/annual report2025 5% Dear Shareowners, P&G delivered continued organic sales and core earnings-per-share growth and returned significant cash to shareowners in fiscal year 2025, despite volatile macro-economic, geopolitical and consumer headwinds. Organic sales for the fiscal year grew 2%. Core earnings per share grew 4%. On a currency-neutral basis, core earnings per share were also up 4%. Adjusted free cash flow productivity was 87%. The last quarter was our 39th consecutive quarter of top-line growth. Fiscal 2025 was our ninth consecutive year of core earnings-per-share growth. Growth was broad-based across categories and regions. Nine of 10 product categories grew organic sales for the year. Family Care and Personal Health Care each grew mid-single digits. Fabric Care, Home Care, Feminine Care, Hair Care, Grooming, Oral Care, and Skin & Personal Care were up low single digits. Baby Care was down low single digits. Focus markets grew 2% for the year, with North America up 2% and Europe Focus markets up 3%. Enterprise markets were up 2%, led by Latin America with 4% organic sales growth. E-commerce sales increased 12%, now representing 19% of Company total. Thirty of our top 50 category/country combinations held or grew share for the year. Seven of 10 product categories held or grew share globally over the past year. On the bottom line, we delivered 4% core earningsper-share growth despite the higher costs from commodities and tariffs we faced throughout the year. We increased our dividend by 5% and returned over $16 billion of cash to shareowners through nearly $10 billion in dividends and $6.5 billion in share repurchase consistent with our guidance at the start of the year. This is the 69th consecutive annual dividend increase, and the 135th consecutive year P&G has paid a dividend. In summary, sales and earnings growth and strong cash return in a challenging economic and geopolitical environment. While not at the levels we aspired to Jon R. Moeller Chairman of the Board, President and Chief Executive Officer deliver at the beginning of the year, growth in this dynamic and volatile environment is worth acknowledging. Looking ahead, the opportunities for growth and value creation are significant. For example, there are opportunities to better meet the needs among currently unserved and underserved consumers, expand into new segments and grow markets to best-in-class levels. Positioning ourselves to best capture these growth opportunities benefits from disciplined execution of our integrated growth strategy, with a focus on driving category growth and value creation. However, the world continues to change in dynamic and volatile ways. Category growth rates in many parts of the world are slowing. Consumers face greater uncertainty. Competition is fierce. The geopolitical environment is unpredictable. And technology is rapidly transforming nearly every aspect of daily life. To meet these opportunities and challenges, we need to widen our margin of advantage. This requires even greater focus on strengthening each component of our integrated strategy, which has enabled strong results, to capture the opportunities it creates. This is the path P&G is on. P&G s Integrated Strategic Choices to Win Our integrated strategy a portfolio of daily-use categories where performance drives brand choice; superiority across product, package, brand communication, retail execution, and value; productivity; constructive disruption; all enabled by an empowered, agile and accountable organization. Portfolio performance drives brand choice Integrated Growth Strategy Organization empowered, agile, accountable Constructive Disruption across our business We call this an integrated growth strategy for a reason. These choices reinforce and build on each other, and each needs to be delivered. It is not a menu to pick and choose from. The advantage comes in being able to do all these things with excellence at the same time. Our strategy is dynamic, not static. It allows us to adapt to the volatile world around us, to the changing needs of consumers and retail partners, and to a competitive environment with highly capable companies around us. We adjust and flex the strategy in real time while still delivering the fundamental objectives of each element. Portfolio: Daily Use, Where Performance Drives Brand Choice Our integrated strategy starts with a focused portfolio of daily-use categories where performance drives brand choice across Fabric Care, Home Care, Baby Care, Feminine Care, Family Care, Hair Care, Skin & Personal Care, Oral Care, Personal Health Care, and Grooming. We continue to be active and disciplined managers of our portfolio. We are continuously making choices to strengthen our portfolio and our ability to generate U.S. dollar-based returns, including additions and exits of categories, brands and product forms in individual markets. Superiority to win with consumers Productivity to fuel investments Competing successfully in daily-use categories where performance drives brand choice requires brand offerings that are superior to any and all other options. Superiority Across Product, Package, Brand Communication, Retail Execution and Value Our ongoing commitment is to irresistible superiority through innovation integrated across product, package, brand communication, retail execution, and consumer and customer value. Superior performing products in superior packages provide noticeably better benefits to consumers. They become aware of and learn about these products through superior brand communications. This comes to life in stores and online with superior retail execution and delivers superior consumer value at a price that is considered worth it across each price tier where we compete. We are committed to delivering superiority across all five vectors in every part of our portfolio all price tiers where we play, all retail channels, all consumer segments we serve, against all brands. This is the path to growing categories, providing value to consumers and customers and creating value for shareowners. The Procter & Gamble Company iii Our proprietary data platform enables brands to use target audience algorithms to serve ads at the right frequency each week, all year round more effective reach and more cost efficient. As a result, in the past five years the average media reach has increased to 80% in the U.S. and to 75% in Europe. Delivering irresistible superiority holistically requires ongoing investment, which is why productivity must be as ingrained in our culture as innovation. Productivity to Fuel Growth and Value Creation We are also investing in retail media to reach consumers closer to when they purchase, particularly in Retailer Search, the largest element of retail media spending. We use a proprietary program that automatically adjusts search ad buying every 15 minutes on retailer search platforms, increasing brand sales return by four times and driving category growth. Productivity is required to fund investments in superiority, to strengthen organization effectiveness and efficiency, to offset inevitable cost and currency challenges, and to deliver strong cash generation. In short, productivity is required for sustained growth and value creation. Productivity is not new to P&G. It is an essential choice that fuels every element of our strategy. Every day, we continue to pursue the many opportunities to drive efficiency up and down our profit and loss statement and across our balance sheet. Our Supply Chain is one of our biggest sources of productivity. Across our production lines, automation technologies continue to play a key role in accelerating supply chain progress in our manufacturing sites. We are now at the stage where real-time vision cameras on many of our manufacturing lines are capturing visual data and applying advanced algorithms to analyze a greater number of products for superior quality driving productivity, while delivering superior quality. We are investing in advanced supply planning technologies to better anticipate consumer demand and adjust production and inventory levels accordingly, helping minimize out of stocks, overproduction and waste. We have enhanced collaboration across retailers and suppliers through these unified digital platforms, facilitating real-time information sharing and decisionmaking, and driving shelf availability building trust and enabling joint value creation. In Brand Building, we are increasingly using programmatic and algorithm-based media buying to enable brands to reach the widest range of consumers where they are most receptive to our brand messages. Materials Manufacturing Constructive Disruption to Extend Competitive Advantage We will continue the constructive disruption of ourselves and our industry changing, adapting and creating new ideas, technologies and capabilities that will extend our competitive advantage. For example, Tide evo represents one of the most significant innovations in laundry in over a century, crafted by concentrating active surfactant ingredients into a mixture that is spun into individual fibers. This sophisticated process ensures each functional fiber delivers the powerful cleaning performance of Tide, in fully recyclable packaging with no plastic bottles and no extra water. This new-to-the-world formulation and assembly process is proprietary to P&G and protected by over 50 granted patents, making it a truly unique and disruptive technology. In test market stores, Tide evo sales have been highly incremental to category growth and retailer demand has been well above initial expectations. Disruption is part of everyday life now, and we intend to lead it constructively in our industry and categories. Overhead Ad Spend & Promotion Working Capital Productivity is integrated into our strategy. We are delivering the same or better output measures with lower spending or resource investment.