P&G CFO Andre Schulten on Q4 results: Highest productivity number delivered in about a decade

Summary

Procter & Gamble CFO Andre Schulten discusses the company's Q4 fiscal 2025 results, which beat on EPS but missed on revenue due to shipment timing, while underlying consumption grew 2.5%. He highlights record productivity of $2.8 billion, broad-based organic sales growth across regions and categories, and stabilizing market share. Guidance for the new fiscal year assumes 1-3% organic sales growth and 0-3% core EPS growth, with a $1 billion after-tax headwind from oil price and Middle East conflict, partially offset by productivity savings. The stock initially dipped on the revenue miss.

• Q4 organic sales growth of 0.5% vs. 2.5% sell-out due to shipment timing and trade spend recognition
• Full-year EPS within original guidance; $2.8B productivity, the highest in about a decade
• Broad momentum: all seven regions growing/holding, nine of ten categories growing, China share gain
• New fiscal year guidance: organic sales +1-3%, core EPS +0-3%
• $1 billion after-tax headwind from Middle East conflict and oil assumed at $90/bbl
• Consumer strength assumed to remain at ~2% consumption growth
• Stock down ~3.5-4% after the report on the revenue miss and guidance