Unwrapping P&G's Q4 Earnings and Our 2025 Financial Outlook
Happy New Year! As we kick off a new year, it's the perfect time to reflect on where we've financially been and plan where we're financially going. New to the newsletter? Think of us as your guides, here to help you navigate the unique opportunities (and occasional challenges) that come with being a part of Procter & Gamble. Whether it's stock compensation, your employee benefits, or planning for retirement, we're here to help you make the most of it.
P&G Earnings Writeup
Procter & Gamble reported earnings for the 2nd quarter of their Fiscal Year 2025 on 1/22/2025. We will be breaking this report up into 3 segments: Q2 2025 in Review, Looking forward at the Remainder of Fiscal Year 2025, and Watch-Board Items for the remainder of 2025 & Beyond 👇🏼
Quarter 2 2025 in Review
PG was slated to move over 3% higher at open as of 8:00 AM EST, as the company reported earnings that topped Wall Street’s estimates, and saw a rise in volume. While the previous quarters’ for the company have produced a mixed bag of results, Q2 saw a lot of positives reported. Revenue topped expectations, coming in at $21.88 Billion vs. $21.54 Billion expected, and Earnings Per Share topped estimates at $1.88 vs. $1.86. Net Sales rose 2% to $21.88 Billion, following Q1’s result that saw a decline in Net Sales. After years of decreasing volume numbers (mostly attributed to increased pricing), PG saw volume growth return at 1% for the quarter. Importantly, this metric excludes pricing, making it a true measure of demand. This increase was led by a 4% volume jump in the feminine and family care division, which includes Charmin, Puffs, and Tampax. Grooming and Fabric & Home Care also saw volumes rise (by 2% and 1% respectively), while Beauty was the only division to post shrinking volume. This continues the theme of demand in China for skin care products declining.
Looking Forward to the Remainder of Fiscal Year 2025
PG reiterated the forecasts previously in place for Fiscal Year 2025, anticipating that core net earnings per share will still fall in the range of $6.91 to $7.05, and reiterating the revenue growth projections of 2% to 4%. Q2’s results support the tracking on previous forecast. In the past, we have commented that the weak Chinese market (a demand-market that continued to show deterioration in this quarter’s results) could drag the forecasts downwards. For the time being, strong performances elsewhere are helping to offset some of the weakness seen in China. Volume growth outside of China, after years of price hikes, will help offset weakness in this market.
Watch Board Items for 2025 & Beyond
The importance of the return in Volume Growth & Demand in this quarter is paramount. The cost of commodities, and inflationary pressures have been a watch board item for the company, so seeing demand bounce back gives confidence for the remainder of the fiscal year.
While the Chinese market did continue to show weakness, it will be worth watching how committed PG remains in the market. We do not envision any changes in strategy, as Andre Schulten has commented many times that they believe the market will be weak throughout the entirety of fiscal year 2025. Just how weak is what bears watching. PG does, as always, remain committed to returning value to its shareholders. The company expects to pay around $10BN in dividends to shareholders in the fiscal year, and is likely to grow the dividend for a 53rd consecutive year. PG returned nearly $5 Billion in cash to shareholders in this quarter alone ($2.4 Billion in dividends, and $2.5 Billion in buybacks). The company previously stated they expect to repurchase $6BN to $7BN in common shares over the course of this fiscal year.
2024: A Snapshot of the Markets
Let's take a quick look at how the markets performed last year:
S&P 500: Achieved a return of over 23%, marking the second consecutive year with gains exceeding 20%.
Nasdaq Composite: Led the major indices with a nearly 29% increase, driven by strong performances in the technology sector.
Dow Jones Industrial Average: Rose by approximately 13%, reflecting solid gains across various industries.
Procter & Gamble (PG): Delivered a total return of approximately 17.25% over the past year, outperforming its sector and contributing positively to investor portfolios.
In the bond market, the Morningstar US Core Bond Index experienced a 3.04% loss in the final quarter but managed a modest gain of 1.36% for the entire year.
Disclaimer: Past performance is not indicative of future results. Indices are unmanaged and cannot be directly invested in.
New Resources to Support Your 2025 Goals:
To support your financial planning in the new year, we're excited to introduce three newly released whitepapers:
1️⃣ IRMAA Surcharge Planning: Learn strategies to potentially reduce income-related Medicare premiums and preserve more of your retirement income.
2️⃣ Diversifying P&G Stock: If your portfolio feels heavily weighted with P&G stock, this guide explores options like exchange funds, direct indexing, and long-short strategies to help manage concentration risk. These strategies may not be suitable for everyone, so let’s discuss whether they align with your goals and risk tolerance.
3️⃣ Understanding the Social Security Fairness Act: New legislation from late 2024 addresses changes related to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). This guide breaks down who benefits most and how it may impact retirees with pensions or non-covered earnings.
Upcoming Event
We’re also pleased to announce an exclusive Savvy event featuring Keith Lawrence, author of Your Retirement Quest. Keith will share actionable insights on crafting a meaningful and fulfilling life after Procter and Gamble—a must-attend for those approaching or navigating retirement.
Join us for an upcoming live webinar discussion with Keith Lawrence. Details coming soon.
A Special Client Event
For those we are lucky enough to call clients, we’ll soon be announcing the date of our annual FC Cincinnati game. This event has become a highlight of the year, and we can’t wait to enjoy it with you again in 2025!
2025: Your Year To Take Control
No matter where you are in your financial journey—whether youʼre optimizing stock compensation, preparing for retirement, or fine-tuning your investment strategy—our team is here to guide you step by step. Together, weʼll aim to make the most of your Procter & Gamble benefits and create a plan that works for you.
Meet
Brad Morgan
Hi there! 👋🏼 I'm Brad, a former Procter & Gamble employee turned financial advisor. With a focus on tax planning, I've been a trusted advisor for the P&G community for over ten years.
Disclosures:
1. Savvy Wealth, Inc. (“Savvy Wealth”) is a tech company and the parent company of Savvy Advisors, Inc, (“Savvy Advisors”). All advisory services are offered through Savvy Advisors, Inc., an investment advisor registered with the Securities and Exchange Commission (“SEC”). For the purposes of this blog article, Savvy Wealth and Savvy Advisors may be referred to together as “Savvy”.
2. The views and opinions expressed herein are those of the speakers and authors and do not necessarily reflect the views or positions of Savvy Advisors. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy.
3. Material prepared herein has been created for informational purposes only and should not be considered investment advice or a recommendation. Information was obtained from sources believed to be reliable but was not verified for accuracy.
4. It is important to note that federal tax laws under the Internal Revenue Code (IRC) of the United States are subject to change, therefore it is the responsibility of taxpayers to verify their taxation obligations.
5. To learn more about Savvy, its conflicts of interest, fees and other important disclosures, see our Form ADV Part 2A.
Bounty of Wealth
Unwrapping P&G's Q4 Earnings and Our 2025 Financial Outlook
Happy New Year! As we kick off a new year, it's the perfect time to reflect on where we've financially been and plan where we're financially going. New to the newsletter? Think of us as your guides, here to help you navigate the unique opportunities (and occasional challenges) that come with being a part of Procter & Gamble. Whether it's stock compensation, your employee benefits, or planning for retirement, we're here to help you make the most of it.
P&G Earnings Writeup
Procter & Gamble reported earnings for the 2nd quarter of their Fiscal Year 2025 on 1/22/2025. We will be breaking this report up into 3 segments: Q2 2025 in Review, Looking forward at the Remainder of Fiscal Year 2025, and Watch-Board Items for the remainder of 2025 & Beyond 👇🏼
Quarter 2 2025 in Review
PG was slated to move over 3% higher at open as of 8:00 AM EST, as the company reported earnings that topped Wall Street’s estimates, and saw a rise in volume. While the previous quarters’ for the company have produced a mixed bag of results, Q2 saw a lot of positives reported. Revenue topped expectations, coming in at $21.88 Billion vs. $21.54 Billion expected, and Earnings Per Share topped estimates at $1.88 vs. $1.86. Net Sales rose 2% to $21.88 Billion, following Q1’s result that saw a decline in Net Sales. After years of decreasing volume numbers (mostly attributed to increased pricing), PG saw volume growth return at 1% for the quarter. Importantly, this metric excludes pricing, making it a true measure of demand. This increase was led by a 4% volume jump in the feminine and family care division, which includes Charmin, Puffs, and Tampax. Grooming and Fabric & Home Care also saw volumes rise (by 2% and 1% respectively), while Beauty was the only division to post shrinking volume. This continues the theme of demand in China for skin care products declining.
Looking Forward to the Remainder of Fiscal Year 2025
PG reiterated the forecasts previously in place for Fiscal Year 2025, anticipating that core net earnings per share will still fall in the range of $6.91 to $7.05, and reiterating the revenue growth projections of 2% to 4%. Q2’s results support the tracking on previous forecast. In the past, we have commented that the weak Chinese market (a demand-market that continued to show deterioration in this quarter’s results) could drag the forecasts downwards. For the time being, strong performances elsewhere are helping to offset some of the weakness seen in China. Volume growth outside of China, after years of price hikes, will help offset weakness in this market.
Watch Board Items for 2025 & Beyond
The importance of the return in Volume Growth & Demand in this quarter is paramount. The cost of commodities, and inflationary pressures have been a watch board item for the company, so seeing demand bounce back gives confidence for the remainder of the fiscal year.
While the Chinese market did continue to show weakness, it will be worth watching how committed PG remains in the market. We do not envision any changes in strategy, as Andre Schulten has commented many times that they believe the market will be weak throughout the entirety of fiscal year 2025. Just how weak is what bears watching. PG does, as always, remain committed to returning value to its shareholders. The company expects to pay around $10BN in dividends to shareholders in the fiscal year, and is likely to grow the dividend for a 53rd consecutive year. PG returned nearly $5 Billion in cash to shareholders in this quarter alone ($2.4 Billion in dividends, and $2.5 Billion in buybacks). The company previously stated they expect to repurchase $6BN to $7BN in common shares over the course of this fiscal year.
2024: A Snapshot of the Markets
Let's take a quick look at how the markets performed last year:
S&P 500: Achieved a return of over 23%, marking the second consecutive year with gains exceeding 20%.
Nasdaq Composite: Led the major indices with a nearly 29% increase, driven by strong performances in the technology sector.
Dow Jones Industrial Average: Rose by approximately 13%, reflecting solid gains across various industries.
Procter & Gamble (PG): Delivered a total return of approximately 17.25% over the past year, outperforming its sector and contributing positively to investor portfolios.
In the bond market, the Morningstar US Core Bond Index experienced a 3.04% loss in the final quarter but managed a modest gain of 1.36% for the entire year.
Disclaimer: Past performance is not indicative of future results. Indices are unmanaged and cannot be directly invested in.
New Resources to Support Your 2025 Goals:
To support your financial planning in the new year, we're excited to introduce three newly released whitepapers:
1️⃣ IRMAA Surcharge Planning: Learn strategies to potentially reduce income-related Medicare premiums and preserve more of your retirement income.
2️⃣ Diversifying P&G Stock: If your portfolio feels heavily weighted with P&G stock, this guide explores options like exchange funds, direct indexing, and long-short strategies to help manage concentration risk. These strategies may not be suitable for everyone, so let’s discuss whether they align with your goals and risk tolerance.
3️⃣ Understanding the Social Security Fairness Act: New legislation from late 2024 addresses changes related to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). This guide breaks down who benefits most and how it may impact retirees with pensions or non-covered earnings.
Upcoming Event
We’re also pleased to announce an exclusive Savvy event featuring Keith Lawrence, author of Your Retirement Quest. Keith will share actionable insights on crafting a meaningful and fulfilling life after Procter and Gamble—a must-attend for those approaching or navigating retirement.
Join us for an upcoming live webinar discussion with Keith Lawrence. Details coming soon.
A Special Client Event
For those we are lucky enough to call clients, we’ll soon be announcing the date of our annual FC Cincinnati game. This event has become a highlight of the year, and we can’t wait to enjoy it with you again in 2025!
2025: Your Year To Take Control
No matter where you are in your financial journey—whether youʼre optimizing stock compensation, preparing for retirement, or fine-tuning your investment strategy—our team is here to guide you step by step. Together, weʼll aim to make the most of your Procter & Gamble benefits and create a plan that works for you.
Meet
Brad Morgan
Hi there! 👋🏼 I'm Brad, a former Procter & Gamble employee turned financial advisor. With a focus on tax planning, I've been a trusted advisor for the P&G community for over ten years.
Disclosures:
1. Savvy Wealth, Inc. (“Savvy Wealth”) is a tech company and the parent company of Savvy Advisors, Inc, (“Savvy Advisors”). All advisory services are offered through Savvy Advisors, Inc., an investment advisor registered with the Securities and Exchange Commission (“SEC”). For the purposes of this blog article, Savvy Wealth and Savvy Advisors may be referred to together as “Savvy”.
2. The views and opinions expressed herein are those of the speakers and authors and do not necessarily reflect the views or positions of Savvy Advisors. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy.
3. Material prepared herein has been created for informational purposes only and should not be considered investment advice or a recommendation. Information was obtained from sources believed to be reliable but was not verified for accuracy.
4. It is important to note that federal tax laws under the Internal Revenue Code (IRC) of the United States are subject to change, therefore it is the responsibility of taxpayers to verify their taxation obligations.
5. To learn more about Savvy, its conflicts of interest, fees and other important disclosures, see our Form ADV Part 2A.
