P&G raises its annual profit by 0.5% and forecasts a more moderate advance in its sales

P&G only raises its annual profit by 0.5% and anticipates more moderate sales growth in a rising cost environment.

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Procter & Gamble (P&G), the American group owner of brands such as Ausonia, Pantene, or Ariel, closed its last fiscal year with a net profit attributed of 16.046 billion dollars (14.103 billion euros), which represents a slight increase of 0.5% compared to the previous year.

The net business figure of P&G reached 87.032 billion dollars (76.491 billion euros), 3.3% more than a year earlier. For its part, organic sales, which exclude the effect of the exchange rate and corporate operations of buying and selling assets, advanced by 1%.

In the beauty area, the company earned 16.023 billion dollars (14.082 billion euros), 7% more year-on-year. The personal care division recorded revenues of 6.918 billion dollars (6.080 billion euros), which represents an increase of 4% compared to the previous year.

The health care unit obtained 12.456 billion dollars (10.947 billion euros), 4% more, while the home care business totaled 30.314 billion dollars (26.643 billion euros), 2% above the previous year. In turn, the division of products for child, female, and family care billed 20.401 billion dollars (17.930 billion euros), 1% more.

Between April and June, which corresponds to the fourth fiscal quarter of the multinational, P&G recorded a net profit attributed of 3.044 billion dollars (2.675 billion euros), 16% less than in the same period of the previous year. In those three months, the net billing amounted to 21.203 billion dollars (18.635 billion euros), 1.5% above the last quarter of the previous fiscal year.

Throughout the year, P&G returned to its shareholders more than 15.000 billion dollars (13.183 billion euros), distributed between 10.200 billion dollars (8.965 billion euros) in dividends and 5.000 billion dollars (4.395 billion euros) allocated to share buybacks.

Furthermore, the company emphasized that, with the increase in the dividend approved in April 2026, it chains 70 consecutive years of increases in this remuneration and 136 years in a row paying dividends since its foundation in 1890.

"The fiscal year 2026 was a year of consolidation, in which we continued to increase sales and profits, and returning high levels of cash to shareholders despite a very complex geopolitical and economic environment," declared Shailesh Jejurikar, president and CEO of P&G.

Looking ahead to the new fiscal year, the company anticipates that its sales will grow between 1% and 3% annually, below the 3.3% increase recorded in the last fiscal year. It also expects that diluted net earnings per share will increase between 1% and 5% compared to the $6.62 obtained in fiscal year 2026.

On the other hand, P&G estimates an adverse impact of around $1 billion (€879 million) after taxes due to the rise in raw materials, energy, and transportation costs; $150 million (€132 million) after taxes due to higher net interest expenses; $150 million after taxes due to lower non-operating income; and $50 million (€44 million) after taxes due to unfavorable exchange rate developments.

Overall, these factors represent a negative effect of $0.56 per share for fiscal year 2027, which implies cutting the expected growth of earnings per share by 8%.

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