What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-04-24 compared with 2025-01-22 · 246 added, 248 removed, 393 unchanged (56% of the section changed)

7 unchanged sentences

Risks and uncertainties to which our forward-looking statements are subject include, without limitation:

(1) the ability to successfully manage global financial risks, including foreign currency fluctuations, currency exchange or pricing controls;

(1) the ability to successfully manage global financial risks, including foreign currency fluctuations, currency exchange, pricing controls or tariffs;

(2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments;

(3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, sanctions or other trade controls;

(4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating;

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The MD&A is organized in the following sections:

• Summary of Results – Six Months Ended December 31, 2024

• Summary of Results – Nine Months Ended March 31, 2025

• Economic Conditions and Uncertainties

• Results of Operations – Three and Six Months Ended December 31, 2024

• Segment Results – Three and Six Months Ended December 31, 2024

• Results of Operations – Three and Nine Months Ended March 31, 2025

• Segment Results – Three and Nine Months Ended March 31, 2025

• Liquidity and Capital Resources

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Throughout the MD&A, we reference business results by region, which are comprised of North America, Europe, Greater China, Latin America, Asia Pacific and India, Middle East and Africa (IMEA).

The following table provides the percentage of net sales and net earnings by reportable business segment (excluding Corporate) for the three and six months ended December 31, 2024:

Three Months Ended December 31, 2024 Six Months Ended December 31, 2024

The following table provides the percentage of net sales and net earnings by reportable business segment (excluding Corporate) for the three and nine months ended March 31, 2025:

Three Months Ended March 31, 2025 Nine Months Ended March 31, 2025

Net Sales Net Earnings Net Sales Net Earnings

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For more details on the restructuring program, refer to Note 11 to the Consolidated Financial Statements.

SUMMARY OF RESULTS – Six Months Ended December 31, 2024

The following are highlights of results for the six months ended December 31, 2024, versus the six months ended December 31, 2023:

• Net sales increased 1% to $43.6 billion versus the prior year period.

Net sales increased 2% in Health Care, 1% in Fabric & Home Care and Baby, Feminine & Family Care and decreased 3% in Beauty.

Net sales in Grooming were unchanged.

SUMMARY OF RESULTS – Nine Months Ended March 31, 2025

The following are highlights of results for the nine months ended March 31, 2025, versus the nine months ended March 31, 2024:

• Net sales were $63.4 billion, a decrease of $112 million versus the prior year period.

Net sales increased low single digits in Health Care, and decreased low single digits in Baby, Feminine & Family Care and Beauty.

Net sales in Grooming and Fabric & Home Care were unchanged.

Organic sales, which exclude the impacts of acquisitions and divestitures and foreign exchange, increased 2%.

Organic sales increased 3% in Health Care, Fabric & Home Care and Grooming and increased 2% in Baby, Feminine & Family Care.

Organic sales in Beauty were unchanged.

Organic sales increased low single digits in Health Care, Grooming, Fabric & Home Care, Beauty and Baby, Feminine & Family Care.

• Net earnings were $12.4 billion, an increase of $609 million, or 5%, versus the prior year period due to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year, partially offset by higher restructuring charges in the current year of $0.8 billion after tax related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina.

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As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies.

We are exposed to market risks from operating in challenging environments due to economic, political and social instabilities, natural disasters, debt and credit issues, currency controls, foreign exchange and interest rate changes.

We are exposed to various risks due to economic, political and social instabilities, market volatility, natural disasters, debt and credit issues, currency controls, new or increased tariffs (including any such tariffs between the U.S.

and China or the U.S.

and Canada), foreign exchange and interest rate changes.

These risks can negatively impact our net sales, net earnings and cash flows.

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These include tax policy changes (both U.S.

and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on

The Procter & Gamble Company 17

and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy”.

Government controls such as currency exchanges, pricing and import authorizations as well as government policies related to environmental and climate change matters and changes to international trade agreements can also impact our financial performance.

"Addressing the Challenges of the Digitalization of the Economy”.

For additional information on risk factors that could impact our business results, please refer to Risk Factors in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended June 30, 2024.

RESULTS OF OPERATIONS – Three Months Ended December 31, 2024

The following discussion provides a review of results for the three months ended December 31, 2024, versus the three months ended December 31, 2023.

Three Months Ended December 31

RESULTS OF OPERATIONS – Three Months Ended March 31, 2025

The following discussion provides a review of results for the three months ended March 31, 2025, versus the three months ended March 31, 2024.

Three Months Ended March 31

Amounts in millions, except per share amounts 2025 2024 % Chg

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Core net earnings per common share 1.54 1.52 1%

Three Months Ended December 31

Three Months Ended March 31

COMPARISONS AS A PERCENTAGE OF NET SALES 2025 2024 Basis Pt Chg

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Net earnings attributable to Procter & Gamble 19.1 % 18.6 % 50

Net sales for the quarter increased 2% to $21.9 billion as unit volume and mix each increased 1%.

Pricing and foreign exchange had a neutral impact on net sales.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 3% and organic volume increased 2%.

Net sales for the quarter decreased 2% to $19.8 billion.

The decrease in net sales was due to unfavorable foreign exchange of 2% and unit volume decline of 1%, partially offset by higher pricing of 1%.

Mix had a neutral impact on net sales.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 1% and organic volume was unchanged.

The following table summarizes key drivers of the change in net sales by reportable segment:

Net Sales Change Drivers 2025 vs.

2023 (Three Months Ended December 31) (1)

2024 (Three Months Ended March 31) (1)

Volume with Acquisitions & Divestitures Volume Excluding Acquisitions & Divestitures Foreign Exchange Price Mix Other (2)

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• 120 basis points of decline from unfavorable product mix,

• 50 basis points of higher commodity costs,

18 The Procter & Gamble Company

• 40 basis points of product and packaging investments,

• 20 basis points of higher transportation services costs and

18 The Procter & Gamble Company

• 30 basis points of higher commodity costs and

• 20 basis points of unfavorable foreign exchange impacts.

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• 30 basis points of increase due to higher pricing.

Total SG&A spending increased 4% to $5.7 billion versus the prior year period due to increased marketing spending and overhead costs.

SG&A as a percentage of net sales increased 40 basis points to 26.2% due to an increase in marketing spending and overhead costs as a percentage of net sales.

Marketing spending as a percentage of net sales increased 10 basis points as the increase in marketing spending was partially offset by the positive scale impacts of the net sales increase and productivity savings.

Overhead costs as a percentage of net sales increased 40 basis points as wage inflation and foreign exchange were partially offset by the positive scale impacts of the net sales increase and productivity savings.

Other operating expenses as a percentage of net sales was unchanged.

Total SG&A spending decreased 6% to $5.5 billion versus the prior year period due to decreased marketing spending and overhead costs.

SG&A as a percentage of net sales decreased 120 basis points to 27.9% due to decreases in marketing spending and overhead costs as a percentage of net sales.

Marketing spending as a percentage of net sales decreased 30 basis points due to productivity savings.

Overhead costs as a percentage of net sales decreased 70 basis points as wage inflation and foreign exchange headwinds were more than offset by productivity savings, which includes adjustments to expected variable compensation payouts.

Other operating expenses as a percentage of net sales decreased 20 basis points due to favorable foreign exchange impacts.

Productivity-driven cost savings delivered 120 basis points of benefit to SG&A as a percentage of net sales.

Operating income increased $1.3 billion, or 30%, to $5.7 billion and operating margin increased 550 basis points to 26.2% versus the prior year period primarily due to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year, as well as the increase in net sales, partially offset by the decrease in gross margin, the components of which are described above.

Operating income increased $98 million, or 2%, to $4.6 billion and operating margin increased 90 basis points to 23.0% versus the prior year period primarily due to decreased marketing spending and overhead costs, partially offset by the decrease in gross margin, the components of which are described above.

Non-Operating Expenses and Income

Interest expense was $217 million for the quarter, a decrease of $16 million versus the prior year period.

Interest income was $119 million for the quarter, a decrease of $14 million versus the prior year period.

Other non-operating income/(expense) was $224 million, which is an increase of $47 million versus the prior year period due to an increase in the net periodic benefit credit for postretirement benefits.

The effective income tax rate for the three months ended December 31, 2024, was 20.3%, compared to 22.3% for the three months ended December 31, 2023.

The decrease in the effective tax rate was primarily driven by favorable geographic mix impacts and higher excess tax benefits of share-based compensation.

Net earnings increased $1.2 billion, or 33%, to $4.7 billion due primarily to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year.

Interest income was $111 million for the quarter, an increase of $7 million versus the prior year period.

Other non-operating income/(expense) was $210 million, which is a decrease of $50 million versus the prior year period due to gains from the sale of minor brands in the prior year.

The effective income tax rate for the three months ended March 31, 2025, was 18.6%, compared to 17.7% for the three months ended March 31, 2024.

The increase in the effective tax rate was primarily driven by lower excess tax benefits of share-based compensation.

Net earnings were unchanged at $3.8 billion versus the prior year period due primarily to the increase in operating income, partially offset by the decrease in other non-operating income and the increase in the effective tax rate.

Foreign exchange had a negative impact of approximately $75 million on net earnings for the quarter, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S.

Net earnings attributable to Procter & Gamble increased $1.2 billion, or 34%, to $4.6 billion for the quarter.

Net earnings attributable to Procter & Gamble were unchanged at $3.8 billion for the quarter.

Diluted EPS increased 1% to $1.54 versus the prior year period.

RESULTS OF OPERATIONS – Six Months Ended December 31, 2024

The following discussion provides a review of results for the six months ended December 31, 2024, versus the six months ended December 31, 2023.

Six Months Ended December 31

RESULTS OF OPERATIONS – Nine Months Ended March 31, 2025

The following discussion provides a review of results for the nine months ended March 31, 2025, versus the nine months ended March 31, 2024.

Nine Months Ended March 31

Amounts in millions, except per share amounts 2025

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Core net earnings per common share 5.35 5.19 3%

The Procter & Gamble Company 19

Six Months Ended December 31

Nine Months Ended March 31

COMPARISONS AS A PERCENTAGE OF NET SALES 2025

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Net earnings attributable to Procter & Gamble 19.5 % 18.5 % 100

Net sales for the period increased 1% to $43.6 billion as a 1% increase in both unit volume and higher pricing was partially offset by unfavorable foreign exchange of 1%.

Mix was unchanged.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2%.

The Procter & Gamble Company 19

Net sales for the period were $63.4 billion, a $112 million decline versus the prior year period as a 1% decline from unfavorable foreign exchange was partially offset by a 1% increase from higher pricing.

Volume and mix were unchanged.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2% and organic volume increased 1%.

The following table summarizes key drivers of the change in net sales by reportable segment:

Net Sales Change Drivers 2025 vs.

2023 (Six Months Ended December 31) (1)

2024 (Nine Months Ended March 31) (1)

Volume with Acquisitions & Divestitures Volume Excluding Acquisitions & Divestitures Foreign Exchange Price Mix Other (2)

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• 100 basis points of decline from unfavorable product mix,

• 70 basis points of higher commodity costs,

• 40 basis points of product and packaging investments,

• 30 basis points of higher commodity costs,

• 20 basis points of higher transportation services and other costs and

1 unchanged sentence

These impacts were partially offset by:

• 170 basis points of manufacturing productivity savings,

• 20 basis points of increase due to higher pricing and

• 10 basis points of increase from gain of manufacturing scale benefits.

Total SG&A spending increased 1% to $11.2 billion versus the prior year period due to increased marketing spending and overhead costs.

SG&A as a percentage of net sales increased 10 basis points to 25.8% due to the increase in marketing spending and overhead spending as a percentage of sales.

Marketing spending as a percentage of net sales increased 30 basis points as the increase in marketing spending was partially offset by the positive scale impacts of the net sales increase and productivity savings.

Overhead costs as a percentage of net sales increased 20 basis points due to wage inflation, partially offset by the positive scale impacts of the net sales increase and productivity savings.

• 160 basis points of manufacturing productivity savings and

• 20 basis points of increase due to higher pricing.

Total SG&A spending decreased 1% to $16.8 billion versus the prior year period due to higher foreign exchange transactional charges in the prior year period and decreased overhead costs.

SG&A as a percentage of net sales decreased 40 basis points to 26.4% due primarily to a decrease in other operating expenses as a percentage of sales.

Marketing spending as a percentage of net sales increased 10 basis points as the increase in marketing spending was partially offset by productivity savings.

Overhead costs as a percentage of net sales were unchanged as wage inflation was offset by productivity savings, which includes adjustments to expected variable compensation payouts.

Other operating expenses as a percentage of net sales decreased 40 basis points primarily driven by favorable foreign exchange impacts.

Productivity-driven cost savings delivered 100 basis points of benefit to SG&A as a percentage of net sales.

Operating income increased $1.3 billion, or 13%, to $11.5 billion and operating margin increased 290 basis points to 26.5% versus the prior year period due primarily to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year, as well as the increase in net sales, partially offset by the decrease in gross margin, the components of which are described above.

20 The Procter & Gamble Company

Operating income increased $1.4 billion, or 10%, to $16.1 billion and operating margin increased 230 basis points to 25.4% versus the prior year period due primarily to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year.

Non-Operating Expenses and Income

Interest expense was $478 million for the period, an increase of $6 million versus the prior year period.

Interest expense was $695 million for the period, a decrease of $10 million versus the prior year period.

Interest income was $365 million for the period, a decrease of $1 million versus the prior year period.

Other non-operating income/(expense) was $(120) million, which is a decrease of $690 million versus the prior year period primarily due to the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina recorded in the period ended September 30, 2024.

The effective income tax rate for the six months ended December 31, 2024, was 21.3%, compared to 21.8% for the six months ended December 31, 2023.

The decrease in the effective tax rate was primarily driven by higher excess tax benefits of share-based compensation and favorable geographic mix impacts, partially offset by a 140 basis-point increase due primarily to the charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

The effective income tax rate for the nine months ended March 31, 2025, was 20.5%, compared to 20.6% for the nine months ended March 31, 2024.

The decrease in the effective tax rate was primarily driven by higher excess tax benefits of share-based compensation, favorable geographic mix impacts and decreases from discrete impacts related to uncertain tax positions, partially offset by a 100 basis-point increase due primarily to the charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

20 The Procter & Gamble Company

Net earnings increased $609 million, or 5%, to $12.4 billion, as the increase in operating income, the components of which are described above, were partially offset by the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina recorded in the period ended September 30, 2024.

Foreign exchange had a positive impact of approximately $17 million on net earnings for the period, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S.

Foreign exchange had a negative impact of approximately $58 million on net earnings for the period, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S.

Net earnings attributable to Procter & Gamble increased $617 million, or 5%, to $12.4 billion for the period.

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Core EPS, which represents diluted EPS excluding charges for incremental restructuring and the impairment of the Gillette intangible asset, increased 3% to $5.35.

SEGMENT RESULTS – Three and Six Months Ended December 31, 2024

SEGMENT RESULTS – Three and Nine Months Ended March 31, 2025

The following discussion provides a review of results by reportable business segment.

Analysis of the results for the three and six months ended December 31, 2024, is provided based on a comparison to the three and six months ended December 31, 2023.

Analysis of the results for the three and nine months ended March 31, 2025, is provided based on a comparison to the three and nine months ended March 31, 2024.

The primary financial measures used to evaluate segment performance are net sales and net earnings.

The table below provides supplemental information on net sales, earnings before income taxes and net earnings by reportable business segment for the three and six months ended December 31, 2024, versus the comparable prior year period (dollar amounts in millions):

Three Months Ended December 31, 2024

The table below provides supplemental information on net sales, earnings before income taxes and net earnings by reportable business segment for the three and nine months ended March 31, 2025, versus the comparable prior year period (dollar amounts in millions):

Three Months Ended March 31, 2025

Net Sales % Change Versus Year Ago Earnings/(Loss) Before Income Taxes % Change Versus Year Ago Net Earnings/(Loss) % Change Versus Year Ago

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Total Company $ 19,776 (2) % $ 4,661 2 % $ 3,793 — %

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Net Sales % Change Versus Year Ago Earnings/(Loss) Before Income Taxes % Change Versus Year Ago Net Earnings/(Loss) % Change Versus Year Ago

6 unchanged sentences

Total Company $ 63,395 — % $ 15,646 5 % $ 12,439 5 %

The Procter & Gamble Company 21

Three months ended December 31, 2024, compared with three months ended December 31, 2023

Beauty net sales were unchanged at $3.8 billion as unit volume decline of 1% and unfavorable foreign exchange of 1% were offset by positive impacts of higher pricing of 2%.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2% and organic volume was unchanged.

Global market share of the Beauty segment was unchanged.

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Beauty net sales decreased 2% to $3.5 billion, as unfavorable foreign exchange of 3% and unfavorable geographic mix of 2% were partially offset by positive impacts of higher pricing of 3%.

Unit volume was unchanged.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2% and organic volume increased 1%.

Global market share of the Beauty segment decreased 0.4 points.

• Hair Care net sales decreased mid-single digits.

Negative impacts of divestitures, unfavorable foreign exchange and a unit volume decrease were partially offset by positive impacts of favorable geographic and brand mix (due to growth of the premium Native brand).

The volume decrease was driven by a decline in Greater China (due to market contraction in the retail channel where we have higher shares and distribution footprint changes), partially offset by growth in Latin America and Europe (due to market growth).

Organic sales increased low single digits driven by high single-digit growth in Latin America and a low single-digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

Global market share of the Hair Care category decreased 0.7 points.

• Personal Care net sales increased double digits.

Positive impacts of an increase in unit volume and higher pricing (primarily in North America) were partially offset by unfavorable foreign exchange.

The volume increase was driven by growth in North America (due to innovation), Europe (due to distribution expansion and innovation), and Latin America (due to market growth).

Organic sales increased double digits due to a low teens growth in North America and a more than 20% growth in Europe, partially offset by a mid-single-digit decline in Greater China.

Negative impacts of unfavorable foreign exchange, divestitures and a unit volume decrease were partially offset by positive impacts of favorable product mix and higher pricing (primarily in Latin America and North America).

The volume decrease was driven by a decline in Greater China (due to market contraction and the impact of divestitures), partially offset by growth in Latin America and North America (both due to market growth).

Organic sales were unchanged as a high single-digit growth in Latin America and a mid-single-digit growth in North America were offset by a double-digit decline in Greater China.

Global market share of the Hair Care category decreased 1 point.

• Personal Care net sales increased high single digits.

Positive impacts of an increase in unit volume and higher pricing (primarily in North America) were partially offset by negative impacts from geographic mix and unfavorable foreign

The Procter & Gamble Company 21

The volume increase was driven by growth in Europe (due to distribution expansion and innovation), North America (due to innovation), and Latin America (due to market growth).

Organic sales increased high single digits due to a more than 20% growth in Europe, a mid-teens growth in Latin America and a high single-digit growth in North America.

Global market share of the Personal Care category increased 0.6 points.

• Skin Care net sales decreased low single digits.

Negative impacts of a decrease in unit volume were partially offset by favorable mix (due primarily to the growth of the super-premium SK-II brand, which has higher than category-average selling prices), higher pricing (primarily in Greater China) and a favorable foreign exchange impact.

The volume decrease was driven by declines in all regions, led by North America (due to distribution losses) and Greater China (due to market contraction).

Organic sales decreased mid-single digits due to a 20% decline in North America and a mid-single-digit decline in Asia Pacific, partially offset by a mid-single-digit growth in Greater China.

• Skin Care net sales decreased mid-single digits.

Negative impacts of a decrease in unit volume, unfavorable foreign exchange and unfavorable geographic mix were partially offset by positive impacts from higher pricing (primarily in Greater China).

The volume decrease was driven by North America and Europe (both due to distribution losses).

Organic sales decreased low single digits due to a low teens decline in North America and a high single-digit decline in Asia Pacific, partially offset by a high single-digit growth in Greater China.

Global market share of the Skin Care category decreased 0.8 points.

Net earnings decreased 10% to $780 million due to a 230 basis-point decline in net earnings margin.

Net sales were unchanged.

Net earnings margin decreased due to a decrease in gross margin and an increase in SG&A as a percentage of net sales, partially offset by a lower effective tax rate.

The gross margin decline was driven by negative product mix (due to the decline of premium brands) and higher commodity costs, partially offset by increased productivity savings and higher pricing.

SG&A as a percentage of net sales increased due primarily to increases in marketing and overhead spending.

The lower effective tax rate was driven by favorable geographic mix.

Six months ended December 31, 2024, compared with six months ended December 31, 2023

Beauty net sales decreased 3% to $7.7 billion, as unit volume decrease of 1%, negative impacts of unfavorable foreign exchange of 1% and unfavorable mix of 2% (due primarily to the decline of the super-premium SK-II brand, which has higher than segment-average selling prices) were partially offset by the positive impacts of higher pricing of 1%.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic volume and organic sales were unchanged.

Global market share of the Beauty segment increased 0.1 points.

• Hair Care net sales decreased low single digits.

Negative impacts of divestitures, declining unit volume and unfavorable foreign exchange were partially offset by positive impacts of favorable brand mix (due to growth of the premium Native brand) and higher pricing (primarily in Europe and Latin America).

The decline in unit volume was driven by a decline in Greater China (due to market contraction and distribution footprint changes), partially offset by growth in North America (due to innovation) and Latin America (due to market growth).

Organic sales increased low single digits due to a high single-digit growth in Latin America and a mid-single-digit growth in North America, partially offset by a high single-digit decline in Greater China.

Net earnings decreased 8% to $539 million due to a decrease in net sales and a 110 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin and an increase in SG&A as a percentage of net sales.

The gross margin decline was driven by unfavorable category and geographic mix, partially offset by increased productivity savings.

SG&A as a percentage of net sales increased due to increases in marketing, overhead spending and higher foreign exchange transactional charges.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Beauty net sales decreased 2% to $11.2 billion, driven by unfavorable mix of 2% (due primarily to the decline of the super-premium SK-II brand, which has higher than segment-average selling prices), unfavorable foreign exchange of 1% and a unit volume decrease of 1%, partially offset by the positive impacts of higher pricing of 2%.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic volume and organic sales increased 1%.

Global market share of the Beauty segment decreased 0.2 points.

• Hair Care net sales decreased mid-single digits.

Negative impacts of divestitures, declining unit volume and unfavorable foreign exchange were partially offset by positive impacts of favorable product mix and higher pricing (primarily in Latin America and Europe).

The decline in unit volume was driven by a decline in Greater China (due to market contraction and the impact of divestitures), partially offset by growth in North America and Latin America (both due to market growth).

Organic sales increased low single digits due to a high single-digit growth in Latin America and a mid-single-digit growth in North America, partially offset by a double-digit decline in Greater China.

Global market share of the Hair Care category decreased 0.8 points.

• Personal Care net sales increased high single digits.

Positive impacts of an increase in unit volume, higher pricing (primarily in North America) and favorable product mix (due to the growth of the premium brands) were partially offset by unfavorable foreign exchange.

The volume increase was driven by growth in North America (due to innovation), Europe (due to distribution expansion and innovation), and Latin America (due to market growth), partially offset by a decline in Greater China (due to market contraction).

Organic sales increased double digits due to a more than 20% growth in Europe and a double digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

Positive impacts of an increase in unit volume and higher pricing (primarily in North America) were partially offset by unfavorable geographic mix and unfavorable foreign exchange.

The volume increase was driven by growth in North America (due to innovation), Europe (due to distribution expansion and innovation) and Latin America (due to market growth).

Organic sales increased double digits due to a more than 20% growth in Europe, a 20% growth in Latin America and a double-digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

Global market share of the Personal Care category increased 0.6 points.

• Skin Care net sales decreased mid-teens.

Negative impacts of a decrease in unit volume and unfavorable product mix (due primarily to the decline of the super-premium SK-II brand, which has higher than category-average selling prices), were partially offset by higher pricing (primarily in Greater China and Asia Pacific).

• Skin Care net sales decreased double digits.

The volume decrease was driven by declines in all regions, led by North America (due to distribution losses) and Greater China (due to market contraction).

22 The Procter & Gamble Company

Organic sales decreased mid-teens due to 20% declines in North America and Asia Pacific and a double-digit decline in Greater China.

Organic sales decreased double digits due to a high-teens decline in North America, a mid-teens decline in Asia Pacific and a mid-single-digit decline in Greater China.

Global market share of the Skin Care category decreased 0.6 points

Net earnings decreased 11% to $2.2 billion due to a decrease in net sales and a 190 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin and an increase in SG&A as a percentage of net sales, partially offset by a lower effective tax rate.

The gross margin decline was driven by negative product mix (due to the decline of the super-premium SK-II brand) and higher commodities, partially offset by increased pricing and productivity savings.

Net earnings margin decreased due to a decrease in gross margin and an increase in SG&A as a percentage of net sales.

The gross margin decline was driven by unfavorable product mix (due to the decline of the super-premium SK-II brand) and higher commodities, partially offset by increased productivity savings.

SG&A as a percentage of net sales increased due primarily to an increase in marketing and overhead spending.

The lower effective tax rate was driven by favorable geographic mix.

Three months ended December 31, 2024, compared with three months ended December 31, 2023

Grooming net sales increased 1% to $1.8 billion as the benefits of a 2% increase in unit volume and higher pricing of 1% (driven primarily by IMEA and Asia Pacific) were partially offset by unfavorable geographic mix of 1% and unfavorable foreign exchange of 1%.

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Grooming net sales decreased 2% to $1.5 billion as the negative impacts from unfavorable foreign exchange of 4% and divestitures of 1% were partially offset by the positive impacts from higher pricing of 2% (driven primarily by Latin America, Europe and North America) and a unit volume increase of 1%.

The volume increase was driven by growth in IMEA (due to increased distribution) and Europe (due to market growth), partially offset by volume decline in Latin America (due to competitive activity).

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 3% driven by high single-digit growth in IMEA and low single-digit growth in North America and Europe.

Global market share of the Grooming segment decreased 0.5 points.

Net earnings increased 6% to $321 million due to 160 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin and a decrease in SG&A as a percentage of net sales.

The gross margin

22 The Procter & Gamble Company

improvement was primarily driven by increased productivity savings and increased pricing, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due primarily to a reduction in marketing spending.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Grooming net sales were unchanged at $5.0 billion as the benefits of a 3% increase in unit volume and higher pricing of 1% (driven primarily by Latin America and IMEA) were offset by unfavorable foreign exchange of 2%, unfavorable geographic mix of 1% and the negative impact from divestitures of 1%.

The volume increase was driven by growth in IMEA (due to increased distribution) and Europe (due to market growth).

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2% driven by a low teens growth in IMEA and a double-digit growth in Asia Pacific.

Global market share of the Grooming segment increased 0.3 points.

Net earnings increased 4% to $459 million due to an increase in net sales and an 80 basis-point increase in net earnings margin.

Net earnings margin increased as an increase in gross margin and a decrease in SG&A as a percentage of net sales were partially offset by a higher effective tax rate.

The gross margin improvement was primarily driven by increased productivity savings and increased pricing, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due primarily to higher foreign exchange transactional charges in the prior year period.

The higher effective tax rate was driven by unfavorable geographic mix.

Six months ended December 31, 2024, compared with six months ended December 31, 2023

Grooming net sales were unchanged at $3.5 billion driven by unit volume increase of 3% and higher pricing of 1% (driven primarily by Latin America and IMEA), offset by unfavorable geographic mix of 2% and unfavorable foreign exchange of 2%.

The volume increase was driven by growth in IMEA (due to increased distribution), Latin America (due to market growth) and Europe (due to market growth).

Excluding the impact of acquisitions and divestitures and foreign exchange, Grooming organic sales increased 3% due to high teens growth in IMEA, high single-digit growth in Asia Pacific and mid-single-digit growth in Latin America.

Organic volume increased 4%.

Excluding the impact of acquisitions and divestitures and foreign exchange, Grooming organic sales increased 3% due to low-teens growth in IMEA, high single-digit growth in Asia Pacific and low single-digit growth in Europe.

Global market share of the Grooming segment increased 0.1 points.

Net earnings increased 3% to $885 million due to a 60 basis-point increase in net earnings margin.

Net earnings margin increased as a decrease in SG&A as a percentage of net sales was partially offset by a decrease in gross margin.

The gross margin decrease was driven primarily by unfavorable geographic mix, partially offset by productivity savings and higher pricing.

SG&A as a percentage of net sales decreased due to higher foreign exchange transactional charges in the prior year period and reduced marketing spending.

Three months ended December 31, 2024, compared with three months ended December 31, 2023

Health Care net sales increased 2% to $3.2 billion driven by favorable product mix of 2% and higher pricing of 1%.

Unit volume and foreign exchange were unchanged.

Net earnings increased 4% to $1.2 billion due to a 90 basis-point increase in net earnings margin.

Net earnings margin increased due to a decrease in SG&A as a percentage of net sales, an increase in gross margin and a lower effective tax rate.

The gross margin increase was driven primarily by productivity savings, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due to higher foreign exchange transactional charges in the prior year period.

The lower effective tax rate was driven by favorable geographic mix.

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Health Care net sales were unchanged at $2.9 billion as the benefits of favorable product mix of 3% and higher pricing of 1% were offset by unfavorable foreign exchange impacts of 3% and a 1% decrease in unit volume.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 4%.

Global market share of the Health Care segment was unchanged.

• Oral Care net sales increased mid-single digits driven by the positive impacts of favorable product mix (due to growth of power brushes and premium paste, which have higher than category-average selling prices).

Unit volume was unchanged as growth in North America (due to market growth and innovation) and Europe (due to distribution gains and innovation) was offset by declines in Greater China (due to market contraction and share losses) and IMEA (due to share losses).

Organic sales increased low single digits driven by a high single-digit increase in Europe and a mid-single-digit increase in North America, partially offset by a mid-teens decrease in Greater China.

Global market share of the Health Care segment increased 0.3 points.

• Oral Care net sales decreased low single digits driven by a unit volume decline and negative impacts of unfavorable foreign exchange, partially offset by positive impacts of favorable product mix (due to growth of power brushes and premium paste, which have higher than category-average selling prices).

The unit volume decrease was due to declines in all regions, led by Greater China (due to market contraction and competitive activity) and IMEA (due to share losses).

Organic sales increased low single digits driven by a mid-single-digit increase in Europe, partially offset by a mid-teens decrease in Greater China.

Global market share of the Oral Care category increased 0.1 points.

• Personal Health Care net sales increased low single digits as higher pricing (driven by Europe and Latin America) and a unit volume increase were partially offset by negative impacts of product mix (due to the decline of respiratory products, which have higher than category-average selling prices) and unfavorable foreign exchange.

The unit volume increase was primarily due to growth in Europe (due to innovation), partially offset by a decline in IMEA (due to increased competitive activity).

Organic sales increased low single digits driven by a double-digit growth in Europe, partially offset by a low-single-digit decline in North America.

Global market share of the Personal Health Care category decreased 0.1 points.

Net earnings increased 5% to $758 million due to net sales growth and a 60 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin, partially offset by an increase in SG&A as a percentage of net sales.

The gross margin increase was driven primarily by productivity savings and higher pricing, partially offset by

The Procter & Gamble Company 23

unfavorable product mix (due to a decline in respiratory products, which have higher than segment-average gross margins).

SG&A as a percentage of net sales increased due to an increase in overhead spending, partially offset by the positive scale impacts of the net sales increase.

Six months ended December 31, 2024, compared with six months ended December 31, 2023

• Personal Health Care net sales increased mid-single digits driven by a unit volume increase and the positive impact of higher pricing (driven by Latin America and Europe), partially offset by the negative impact of unfavorable foreign exchange.

The unit volume increase was primarily due to growth in North America (due to the later peak in the respiratory season) and IMEA (due to innovation).

Organic sales increased high single digits driven by low-teens growth in Latin America and high single-digit growth in North America.

Global market share of the Personal Health Care category increased 0.4 points.

Net earnings increased 8% to $569 million due to a 140 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin, a decrease in SG&A as a percentage of net sales and a lower effective tax rate.

The gross margin increase was driven primarily by productivity savings and higher pricing, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due to a decline in marketing spending.

The lower effective tax rate was driven by favorable geographic mix.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Health Care net sales increased 2% to $9.3 billion driven by favorable geographic and product mix of 3% and higher pricing of 1%, partially offset by unfavorable foreign exchange of 1% and a 1% decrease in unit volume.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 3% and organic volume was unchanged.

Global market share of the Health Care segment was unchanged.

• Oral Care net sales increased low single digits due to the positive impacts of favorable product mix (due to growth of premium paste and power brushes, which have higher than category-average selling prices), partially offset by a decrease in unit volume.

The unit volume decrease was due to a decline in Greater China (due to market contraction and share losses) and IMEA (due to share losses), partially offset by growth in North America (due to market growth and innovation) and Europe (due to distribution expansion and innovation).

Organic sales also increased low single digits due to a high single-digit increase in Europe and a mid-single-digit increase in North America, partially offset by high teens decreases in Greater China and IMEA.

Global market share of the Health Care segment increased 0.2 points.

The unit volume decrease was due to a decline in Greater China (due to market contraction and increased competitive activity) and IMEA (due to share losses), partially offset by growth in North America (due to market growth and innovation).

Organic sales also increased low single digits due to a high single-digit increase in Europe and a low single-digit increase in North America, partially offset by mid-teens decreases in Greater China and IMEA.

Global market share of the Oral Care category increased 0.1 points.

• Personal Health Care net sales increased low single digits due to the positive impacts of higher pricing (driven by Latin America and Europe), favorable geographic mix and unit volume increase, partially offset by unfavorable foreign exchange.

The increase in unit volume was driven by growth in North America (due to distribution gains), Europe (due to innovation), partially offset by a decline in IMEA (due to increased competitive activity).

Organic sales increased low single digits due to mid-single-digit growth in both Europe and Latin America and low single-digit growth in North America, partially offset by a low single-digit decline in IMEA.

Global market share of the Personal Health Care category decreased 0.1 points.

• Personal Health Care net sales increased low single digits due to a unit volume increase and the positive impacts of higher pricing (driven by Latin America and Europe) and favorable geographic mix, partially offset by the negative impacts of unfavorable foreign exchange.

The increase in unit volume was driven by growth in North America (due to distribution gains), partially offset by a decline in IMEA (due to market contraction and increased competitive activity).

Organic sales increased mid-single digits due to a high single-digit growth in Latin America and a mid-single-digit growth in both North America and Europe.

Global market share of the Personal Health Care category increased 0.2 points.

The Procter & Gamble Company 23

Net earnings increased 7% to $2.1 billion due to net sales growth and a 110 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin, a decrease in SG&A as a percentage of net sales and a lower effective tax rate.

The gross margin increase was driven by productivity savings and higher pricing.

SG&A as a percentage of net sales decreased due to decreased marketing spending, higher foreign exchange transactional charges in the prior year period and the positive scale impacts of the net sales increase.

The lower effective tax rate was driven by favorable geographic mix.

Net earnings margin increased due to an increase in gross margin and a decrease in SG&A as a percentage of net sales.

The gross margin increase was driven by productivity savings, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due to decreased marketing spending.

Fabric & Home Care

Three months ended December 31, 2024, compared with three months ended December 31, 2023

Fabric & Home Care net sales increased 2% to $7.6 billion driven by a unit volume increase of 1% and favorable mix of 1%.

Excluding the impact of foreign exchange and acquisitions and divestitures, organic sales increased 3% and organic volume increased 2%.

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Fabric & Home Care net sales decreased 3% to $6.9 billion driven by unfavorable foreign exchange of 2% and a unit volume decrease of 1%.

Excluding the impact of foreign exchange and acquisitions and divestitures, organic sales and organic volume were unchanged.

Global market share of the Fabric & Home Care segment increased 0.1 points.

• Fabric Care net sales increased low single digits driven by an increase in unit volume and a positive impact of favorable geographic mix, partially offset by unfavorable foreign exchange.

The increase in unit volume was due to growth in North America (due to innovation) and Europe (due to innovation and increased marketing support), partially offset by declines in Latin America (due to share losses).

Organic sales increased low single digits driven by a high single-digit growth in Asia Pacific, a mid-single-digit growth in Europe and a low single-digit growth in North America, partially offset by a high single-digit decline in Latin America.

Global market share of the Fabric Care category increased 0.1 points.

• Home Care net sales increased mid-single digits driven by a unit volume increase and favorable premium product mix, partially offset by the impact of divestitures.

The increase in volume was due to growth in North America (due to innovation) and Europe (due to market growth).

Organic sales increased mid-single digits driven by a mid-single-digit growth in both North America and Europe.

• Fabric Care net sales decreased low single digits driven by unfavorable foreign exchange.

Unit volume was unchanged as growth in Latin America (due to market growth) and IMEA (due to market growth) was offset by a decline in North America (due to retail inventory reduction).

Organic sales were unchanged as the impact of a mid-single-digit growth in Latin America and a low single-digit growth in Europe was offset by the impact of a high single-digit decline in IMEA and a low single-digit decline in North America.

Global market share of the Fabric Care category decreased 0.4 points.

• Home Care net sales decreased low single digits driven by a unit volume decrease and unfavorable foreign exchange, partially offset by favorable premium product mix.

The decrease in volume was due primarily to a decline in Europe (due to increased competitive activity).

Organic sales decreased low single digits driven by a low single-digit decline in Europe, partially offset by a low single-digit growth in North America.

Global market share of the Home Care category increased 0.7 points.

Net earnings decreased 1% to $1.6 billion as the increase in net sales was more than offset by a 60 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin and an increase in SG&A as a percentage of net sales, partially offset by a lower effective tax rate.

The gross margin decrease was driven by unfavorable product mix, partially offset by productivity savings.

SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending, partially offset by the positive scale effects of the net sales increase.

Net earnings decreased 1% to $1.3 billion as the decrease in net sales was partially offset by a 40 basis-point increase in net

earnings margin.

Net earnings margin increased due to a decrease in SG&A as a percentage of net sales and a lower effective tax rate, partially offset by a decrease in gross margin.

The gross margin decrease was driven by unfavorable geographic and product mix, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to a decrease in marketing spending.

The lower effective tax rate was driven by favorable geographic mix.

Six months ended December 31, 2024, compared with six months ended December 31, 2023

Fabric & Home Care net sales increased 1% to $15.3 billion driven by a unit volume increase of 1% and favorable product mix of 1%, partially offset by unfavorable foreign exchange of 1%.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Fabric & Home Care net sales were unchanged at $22.2 billion as favorable product mix of 1% was offset by unfavorable foreign exchange of 1%.

Unit volume was unchanged.

Excluding the impact of foreign exchange and acquisitions and divestitures, organic sales increased 2% and organic volume increased 1%.

Global market share of the Fabric & Home Care segment increased 0.1 points.

• Fabric Care net sales were unchanged as the positive impact of favorable premium product mix was offset by the negative impacts of unfavorable foreign exchange.

Unit volume was unchanged as growth in North America (due to market growth)

24 The Procter & Gamble Company

and Europe (due to innovation and increased marketing support) was offset by declines in Latin America and IMEA (both due to share losses).

Organic sales increased low single digits driven by a mid-single-digit increase in Europe and North America, partially offset by a high single-digit decrease in Latin America.

• Fabric Care net sales decreased low single digits driven by an unfavorable foreign exchange impact, partially offset by the positive impact of favorable premium product mix.

Unit volume was unchanged as growth in Europe (due to innovation) and North America (due to market growth) was offset by declines in Latin America and Asia Pacific (both due to share losses).

Organic sales increased low single digits driven by a mid-single-digit increase in Europe and a low single-digit increase in North America, partially offset by a double-digit decrease in IMEA.

Global market share of the Fabric Care category decreased 0.1 points.

• Home Care net sales increased mid-single digits driven by a unit volume increase and favorable premium product mix, partially offset by the impact of unfavorable foreign exchange and divestitures.

The increase in volume was due primarily to growth in North America (due to innovation) and Europe (due to market growth).

Organic sales increased mid-single digits driven by mid-single-digit growth in North America and Europe.

• Home Care net sales increased low single digits driven by a unit volume increase and favorable premium product mix, partially offset by the impact of unfavorable foreign exchange.

The increase in volume was driven by growth in North America (due to innovation).

Organic sales increased low single digits driven by mid-single-digit growth in North America and low single-digit growth in Europe.

Global market share of the Home Care category increased 0.4 points.

Net earnings increased 1% to $3.2 billion due to the increase in net sales.

Net earnings margin was unchanged as an increase in gross margin and a lower effective tax rate was fully offset by an increase in SG&A as a percentage of net sales.

The gross margin increase was driven by increased productivity savings, partially offset by unfavorable product mix.

SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending, partially offset by the positive scale effects of the net sales increase and higher foreign exchange transactional charges in the prior year period.

Net earnings increased 1% to $4.5 billion due to a 10 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin and a lower effective tax rate, partially offset by an increase in SG&A as a percentage of net sales.

The gross margin increase was driven by increased productivity savings, partially offset by unfavorable geographic and product mix.

SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending, partially offset by higher foreign exchange transactional charges in the prior year period.

The lower effective tax rate was driven by favorable geographic mix.

Baby, Feminine & Family Care

Three months ended December 31, 2024, compared with three months ended December 31, 2023

Baby, Feminine & Family Care net sales increased 3% to $5.3 billion due to a 4% increase in unit volume, partially offset by lower pricing of 1%.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales increased 4%.

Global market share of the Baby, Feminine & Family Care segment was unchanged.

• Baby Care net sales decreased low single digits.

Negative impacts of a decrease in unit volume, lower pricing (driven by merchandising investments in North America and Europe) and divestitures were partially offset by favorable geographic and product mix (due to a higher proportion of premium diapers, which have higher than category-average selling prices).

The unit volume decline was driven by Europe and Asia Pacific (both due to market contraction).

Organic sales decreased low single digits due to a double digit decline in Asia Pacific and a mid-single-digit decline in Europe, partially offset by a mid-single-digit growth in Latin America.

Global market share of the Baby Care category was unchanged.

• Feminine Care net sales increased low single digits.

Positive impacts of favorable geographic mix were partially offset by a decrease in unit volume.

The unit volume decrease was primarily driven by declines in Greater China (due to share losses) and IMEA (due to increased pricing), partially offset by growth in North America (due to market growth).

Organic sales increased low single digits driven by a mid-single-digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Baby, Feminine & Family Care net sales decreased 4% to $4.8 billion driven by a 2% decrease in unit volume and a 2% decline from unfavorable foreign exchange, partially offset by favorable geographic and product mix of 1%.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales decreased 1%.

Global market share of the Baby, Feminine & Family Care segment decreased 0.3 points.

• Baby Care net sales decreased mid-single digits.

Negative impacts of a decrease in unit volume, unfavorable foreign exchange and divestitures were partially offset by positive impacts of favorable geographic and product mix (due to a higher proportion of premium diapers, which have higher than category-average selling prices).

The unit volume decline was driven by IMEA (due to competitive activity), North America (due to distribution loss and competitive activity) and

24 The Procter & Gamble Company

Latin America (due to the impact of divestitures and pricing).

Organic sales decreased low single digits driven by a low-teens decline in Asia Pacific and a double-digit decline in IMEA, partially offset by a low-teens increase in Greater China.

Global market share of the Baby Care category decreased 0.1 points.

• Feminine Care net sales decreased low single digits driven by a unit volume decline and negative impacts of unfavorable foreign exchange, partially offset by positive impacts of favorable geographic mix.

The unit volume decrease was primarily driven by declines in Greater China (due to market contraction and competitive activity) and Latin America (due to share losses), partially offset by growth in North America (due to market growth).

Organic sales were unchanged as the impact of a mid-single-digit growth in North America was offset by double-digit declines in Greater China and Latin America.

Global market share of the Feminine Care category decreased 0.3 points.

• Net sales in Family Care, which is predominantly a North America business, increased double digits driven by an increase in unit volume (due to strong consumption offtake and retail inventory build), partially offset by lower pricing (due to investments).

Organic sales increased double digits.

North America market share of the Family Care category increased 0.3 points.

Net earnings increased 2% to $1.1 billion driven by the increase in net sales, partially offset by the 30 basis-point decline in net earnings margin.

Net earnings margin decreased primarily due to a decline in gross margin, partially offset by a decline in SG&A as a percentage of net sales.

Gross margin decreased primarily due to higher commodity costs and unfavorable mix, partially offset by increased productivity savings.

SG&A as a percentage of net sales decreased due to a decrease in marketing spending, higher foreign exchange transactional charges in the prior year period and positive scale effects of the net sales increase.

Six months ended December 31, 2024, compared with six months ended December 31, 2023

Baby, Feminine & Family Care net sales increased 1% to $10.4 billion driven by a 1% increase in unit volume.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales increased 2%.

• Net sales in Family Care, which is predominantly a North America business, decreased low single digits driven by a decrease in unit volume (due to retail inventory reduction and competitive activity), lower pricing (due to merchandising investments) and unfavorable product mix (due to growth of larger pack sizes, with lower than category-average selling prices).

Organic sales also decreased low single digits.

North America market share of the Family Care category decreased 0.4 points.

Net earnings decreased 12% to $880 million due to a decrease in net sales and a 170 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decline in gross margin and an increase in SG&A as a percentage of net sales.

Gross margin decreased primarily due to higher commodity costs and unfavorable category mix.

SG&A as a percentage of net sales increased due to the negative scale effects of the net sales decrease.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Baby, Feminine & Family Care net sales decreased 1% to $15.2 billion driven by unfavorable foreign exchange of 1%.

Unit volume was unchanged.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales and organic volume increased 1%.

Global market share of the Baby, Feminine & Family Care segment decreased 0.2 points.

• Baby Care net sales decreased mid-single digits.

Negative impacts of a decrease in unit volume, unfavorable foreign exchange and lower pricing (driven by merchandising investments in North America and Europe) were partially offset by favorable product mix (due to growth of premium diapers, which have higher than category-average selling prices).

The unit volume decline was driven across most regions led by Europe and Asia Pacific (both due to market contraction) and IMEA (due to share losses).

Organic sales decreased low single digits primarily driven by a double-digit decline in IMEA and a high single-digit decline in Europe.

Negative impacts of a decrease in unit volume, lower pricing (driven by investments in North America and Europe), unfavorable foreign exchange and divestitures were partially offset by favorable geographic and product mix (due to a higher proportion of premium diapers, which have higher than category-average selling prices).

The unit volume decline was across most regions led by IMEA (due to competitive activity), Asia Pacific (due to market contraction) and Latin America (due to the impact of divestitures).

Organic sales decreased low single digits primarily driven by a double-digit decline in IMEA and a mid-single-digit decline in Europe.

Global market share of the Baby Care category decreased 0.2 points.

• Feminine Care net sales increased low single digits.

Positive impacts of favorable geographic mix and higher pricing (driven primarily by North America and IMEA) were partially offset by a decrease in unit volume and unfavorable foreign exchange.

Organic sales increased low

The Procter & Gamble Company 25

single digits driven by a mid-single-digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

• Feminine Care net sales were unchanged.

Positive impacts of favorable geographic mix were offset by negative impacts of a decrease in unit volume and unfavorable foreign exchange.

Organic sales increased low single digits driven by a mid-single-digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

Global market share of the Feminine Care category decreased 0.4 points.

• Net sales in Family Care, which is predominantly a North America business, increased high single digits driven by an increase in unit volume (due to strong consumption offtake and retail inventory build), partially offset by lower pricing (due to investments).

Organic sales also increased high single digits.

North America market share of the Family Care category increased 0.1 points.

Net earnings were unchanged at $2.2 billion as the increase in net sales was offset by a 10 basis-point decrease in net earnings margin.

Net earnings margin decreased primarily due to a decrease in gross margin, partially offset by a decrease in SG&A as a percentage of net sales.

Gross margin decreased primarily due to higher commodity costs and unfavorable mix, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to higher foreign exchange transactional charges in the prior year period and the positive scale impacts of the net sales increase, partially offset by an increase in overhead spending.

• Net sales in Family Care, which is predominantly a North America business, increased low single digits driven by an increase in unit volume (due to retail inventory build, partially offset by competitive activity), partially offset by lower pricing (due to merchandising investments).

Excluding the impact of foreign exchange, organic sales increased mid-single digits.

North America market share of the Family Care category decreased 0.1 points.

Net earnings decreased 3% to $3.1 billion due to a decrease in net sales and a 60 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin, partially offset by a decrease in SG&A as a percentage of net sales.

Gross margin decreased primarily due to higher commodity costs and unfavorable category mix, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to higher foreign exchange transactional charges in the prior year period and a reduction in marketing spending.

Corporate includes certain operating and non-operating activities not allocated to specific business segments.

2 unchanged sentences

The most notable ongoing reconciling item is income taxes, which adjusts the blended statutory rates that are reflected in the reportable segments to the overall Company effective tax rate.

For the three months ended December 31, 2024, Corporate net sales increased $34 million to $159 million due to an increase in net sales of incidental businesses managed at the corporate level.

Corporate net earnings increased $1.2 billion to a loss of $24 million for the quarter due primarily to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year.

For the six months ended December 31, 2024, Corporate net sales increased $52 million to $322 million due to an increase in net sales of incidental businesses managed at the corporate level.

For the three months ended March 31, 2025, Corporate net sales increased $70 million to $198 million due to an increase in net sales of incidental businesses managed at the corporate level.

Corporate net earnings increased $132 million to $200 million for the quarter due primarily to adjustments to expected variable compensation payouts.

The Procter & Gamble Company 25

For the nine months ended March 31, 2025, Corporate net sales increased $122 million to $520 million due to an increase in net sales of incidental businesses managed at the corporate level.

Corporate net earnings increased $783 million to a loss of $531 million due primarily to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year, partially offset by incremental restructuring charges in the current year, comprised primarily of accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

1 unchanged sentence

Operating Activities

Operating cash flow was $9.1 billion fiscal year to date, a decrease of $877 million versus the prior year period.

Net earnings, adjusted for non-cash items (depreciation and amortization, share-based compensation expense, deferred income taxes and gain/loss on sale of assets), generated $11.3 billion of operating cash flow.

Operating cash flow was $12.8 billion fiscal year to date, a decrease of $1.3 billion versus the prior year period.

Net earnings, adjusted for non-cash items (depreciation and amortization, share-based compensation expense, deferred income taxes and loss on sale of assets), generated $15.9 billion of operating cash flow.

Working capital and other impacts used $3.1 billion of cash in the period primarily driven by the payment of the transitional tax related to the U.S.

Tax Act, the payment of prior fiscal year-end incentive compensation accruals and a reduction in postretirement benefit accruals.

Tax Act, a reduction in postretirement benefit and compensation accruals, a reduction in accrued marketing expense and a reduction in accounts payable.

Days sales outstanding were flat.

Days inventory on hand decreased by one day.

Days inventory on hand increased by four days driven by higher inventory for new product initiatives and increased safety stock levels.

Investing Activities

1 unchanged sentence

Financing Activities

Financing activities used $6.2 billion of net cash fiscal year to date, mainly due to dividends to shareholders and treasury stock purchases, partially offset by a net debt increase and the impact of stock options and other.

As of December 31, 2024, our current liabilities exceeded current assets by $8.2 billion.

Financing activities used $10.4 billion of net cash fiscal year to date, mainly due to dividends to shareholders and treasury stock purchases, partially offset by the impact of stock options and other and a net debt increase.

As of March 31, 2025, our current liabilities exceeded current assets by $9.8 billion.

We anticipate being able to support our short-term liquidity and operating needs largely through cash generated from operations.

6 unchanged sentences

These measures may be useful to investors, as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management.

These measures are also used to evaluate senior management and are a factor in determining their at-risk

26 The Procter & Gamble Company

compensation.

These measures are also used to evaluate senior management and are a factor in determining their at-risk compensation.

These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measures but rather as supplemental information to our business results.

4 unchanged sentences

This measure is used in assessing the achievement of management goals for at-risk compensation.

26 The Procter & Gamble Company

The following tables provide a numerical reconciliation of organic sales growth to reported net sales growth:

Three Months Ended December 31, 2024 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact/Other (1)

Three Months Ended March 31, 2025 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact/Other (1)

Organic Sales Growth

6 unchanged sentences

(1) Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales.

Six Months Ended December 31, 2024 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact/Other (1)

Nine Months Ended March 31, 2025 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact/Other (1)

Organic Sales Growth

11 unchanged sentences

The following table provides a numerical reconciliation of adjusted free cash flow ($ millions):

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Operating Cash Flow Capital Spending U.S.

7 unchanged sentences

The following table provides a numerical reconciliation of adjusted free cash flow productivity ($ millions):

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Adjusted Free Cash Flow Net Earnings Adjustments to

4 unchanged sentences

(1) Adjustments to Net earnings relate to a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

The Procter & Gamble Company 27

Core EPS is a measure of the Company's diluted EPS excluding items that are not judged by management to be part of the Company's sustainable results or trends.

5 unchanged sentences

In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions.

During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina.

During the period ended September 30,

The Procter & Gamble Company 27

2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina.

The adjustment to Core earnings includes the restructuring charges that exceed the normal, recurring level of restructuring charges.

5 unchanged sentences

Reconciliation of Non-GAAP Measures

Three Months Ended December 31, 2024 Three Months Ended December 31, 2023

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

Amounts in millions except per share amounts As Reported

(GAAP) Incremental Restructuring Intangible Impairment Core

(GAAP) Incremental Restructuring Core

Cost of products sold $ 9,694 $ 9,855 $ (13) $ 9,842

5 unchanged sentences

$ 1.54 $ 1.52 $ — $ 1.52

(1) For the three months ended December 31, 2024, there were no adjustments to or reconciling items for Core EPS.

(1) For the three months ended March 31, 2025, there were no adjustments to or reconciling items for Core EPS.

(2) Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

1 unchanged sentence

Core net earnings attributable to P&G — %

28 The Procter & Gamble Company

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Amounts in millions except per share amounts As Reported (GAAP) Incremental Restructuring Core

11 unchanged sentences

Core net earnings attributable to P&G 3 %

28 The Procter & Gamble Company

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

Six Months Ended December 31, 2023

Nine Months Ended March 31, 2024

Amounts in millions except per share amounts As Reported (GAAP) Incremental Restructuring Intangible Impairment Core

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis