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Beauty leads P&G Q1 FY2027 growth, driven by skin and hair care. Key takeaways. * P&G's Beauty segment grew net sales 6% to US$4.41 billion, the fastest of its five segments. * Hair care, skin care, and personal care each grew by mid-single digits. * Beauty net earnings slipped 1%, while higher commodity costs reduced the group's gross margin. Procter & Gamble (P&G) has reported net sales of US$23.3 billion for the first quarter of its fiscal year 2027 (July to September 2026), up 4% year-on-year. Organic sales, which exclude foreign exchange and acquisitions and divestitures, also grew 4%. P&G's Beauty segment led the group's top-line growth in the first quarter of fiscal 2027, although higher commodity costs weighed on margins across the business. The Beauty segment posted the strongest net sales growth of P&G's five segments. It rose 6% to US$4.41 billion, with organic sales up 5%. Despite the sales gains, Beauty's net earnings fell 1% to US$868 million, while earnings before tax rose 1%. The results point to steady consumer demand for P&G's beauty products, including premium skin care, but profit growth in the segment is lagging behind sales. Across the group, P&G said higher commodity costs and product reinvestments reduced gross margin by 160 basis points. In the beauty segment, Hair care grew by mid-single digits, driven by innovation-based pricing in North America and Latin America, a favorable product mix, and higher unit volumes. Personal Care also grew by mid-single digits on volume gains in Greater China and Europe. They were partly offset by trade investments.Premium skin care lifts P&G's beauty sales. Meanwhile, Skin Care organic sales increased by mid-single digits due to a stronger premium product mix and higher volumes in North America. Grooming and Oral Care. In Grooming, net sales rose 4% to US$1.89 billion, and organic sales increased 5%. This was said to be supported by innovation-based pricing, mainly in North America and IMETA (India, the Middle East, and Africa). In Health Care, Oral Care organic sales grew by low single digits as premium mix and pricing offset a decline in unit volumes. Volume growth in Home and fabric care. Fabric and Home Care organic sales increased 5% year-on-year. Both segments driven by volume increases in North America and Europe. Fabric Care growth was also attributed to a favorable geographic mix, and Home Care to a favorable product mix. Baby and Feminine Care grow. The Baby, Feminine, and Family Care segment's organic sales increased 3% versus a year ago. Baby Care organic sales increased mid-single digits, driven by a unit volume increase, primarily in Greater China and North America, and a favorable premium product mix. This was also partially offset by lower pricing, primarily in North America. Feminine Care organic sales increased in low single digits, driven by favorable product mix and innovation-based pricing, primarily in North America. This was partially offset by a unit volume decline in Europe. Family Care organic sales increased in low single digits, driven by a unit volume increase, partially offset by merchandising investments. Hair Care helped P&G's financial results. Margin pressure and outlook. Group diluted earnings per share (EPS) rose 1% to US$1.97. Core EPS was also up 1% at US$2.00. Reported gross margin fell 160 basis points, mainly due to higher commodity costs and product reinvestments, which together accounted for 280 basis points of pressure before productivity savings. "Our solid sales, earnings, and cash results in the first quarter reflect sharpened execution of our integrated strategy," says Shailesh Jejurikar, chairman of the Board, president, and CEO of P&G. "While we expect there will continue to be geopolitical and economic challenges, this strong start keeps us on track to deliver within our guidance ranges for organic sales growth, core EPS growth, and free cash flow productivity for the fiscal year." P&G raised its fiscal 2027 all-in sales growth guidance to a range of 2% to 4% to reflect its acquisition of Thorne, effective October 1, 2026. The company maintained its forecast for organic sales growth of 1% to 3% and core EPS growth of between flat and 3%, equal to US$6.89 to US$7.11 per share. P&G now expects a commodity cost headwind of about US$1.4 billion after tax for the fiscal year, driven by higher costs for raw materials, energy, and transportation. It also expects after-tax headwinds of US$300 million from higher net interest expense, US$150 million from lower non-operating income, and US$50 million from unfavorable exchange rates. Combined, these equate to a headwind of US$0.79 per share for fiscal 2027, or an 11% drag on core EPS growth.

P&G boosts Q1 beauty sales, but says it can do better. Organic sales in the consumer product giant's beauty business increased 5 percent to $4.4 billion. October 22, 2026, 4:41pm The Procter & Gamble Co.'s first-quarter organic beauty sales rose 5 percent to $4.4 billion - and the consumer products giant said there's plenty more growth to be had. Hair care, personal care and skin care, all of which live under the beauty umbrella, each saw a midsingle-digit increase in organic sales. And the division's earnings before interest and taxes increased 1 percent to $1.1 billion. In the grooming business, which includes brands like Braun, Gillette and Venus, organic sales were up 5 percent to $1.9 billion with EBIT up 6 percent to $619 million. While going over P&G's quarterly results with analysts on a conference call, chief financial officer Andre Schulten presented a picture of a company that is very much on the move. "What we are changing is nearly every part of our execution framework to identify superiority gaps even faster and respond quickly to changes needed to product, package, communication, retail execution or value to ignite user growth of our brands," he said. He said those adjustments are starting to take hold and, to prove it, pointed to the Pantene Abundant & Strong line of hair care products. "More than 50 percent of women will experience noticeable hair loss in their lifetime," Schulten said. "In the United States alone, female pattern hair loss affects approximately 30 million individuals. Pantene Abundant & Strong technology grew from research linking scalp oxidative stress to poor scalp conditions and hair quality. "This led to the development of a content bundle and strong collection with a provitamin complex proprietary formulation," he said. "Consumers are delighted with improvements in hair strength and less shedding... and a tingling sensorial experience in the shower - is delivering midsingle-digit sales growth in the U.S. and is growing share." Schulten said the company is about 60 percent down the path of fixing its category-country combinations. "We're running at 29 out of 50 top category-country combinations growing or holding share," he said. "We need to conquer the rest, and that's the task ahead. I'll tell you, our beauty team isn't content with 5 percent of growth. There's way more opportunity in that space that we need to capture." Asked on the call about P&G's business in China, the CFO described it as "in the middle of reinvention." "It's not growing," he said. "WWD Beauty Inc. need to get it back to growth, similar to North America. "WWD Beauty Inc. is not firing on all cylinders yet. But WWD Beauty Inc. is very happy with the China structural progress, and I have very high levels of confidence that WWD Beauty Inc. will fix the remainder of the portfolio and see even more sustained growth in China in a difficult market because market growth is still below 100 in its channels and categories. "Quite frankly, consumer sentiment is not improving. So a big congratulations to the China team for winning in a tough environment," he said. Newsletters

P&G warns of $1.4bn profit hit as raw material, freight costs rise. Procter & Gamble (P&G) has warned that rising raw material, energy and freight costs could reduce its fiscal 2027 profit by approximately $1.4bn, raising concerns about mounting inflationary pressures across the consumer goods industry. The company, which manufactures household and personal care products, including Tide detergent and Pantene shampoo, raised its projected cost impact from an earlier estimate of $1 billion, reflecting the growing pressure of commodity price increases and transportation expenses on its operations. The warning came on Thursday, even as P&G reported better-than-expected first-quarter sales, supported by resilient demand for its beauty and home-care products. Get Toiletries The company said it expects commodity-related pressures to intensify over the next two quarters, potentially putting further pressure on profit margins as it struggles to offset higher operating expenses through productivity improvements and other cost-control measures. Despite the mounting cost burden, P&G maintained its fiscal 2027 financial outlook, projecting organic sales growth of between one and three per cent and core earnings of approximately $7 per share. The development highlights the challenges facing consumer goods manufacturers as elevated energy and transportation costs increase production and distribution expenses, while consumers contend with higher food and fuel prices that are squeezing household budgets. Discover more Read Economics Hire Accountants Compare Biz Loans P&G's first-quarter performance offers an indication of how major consumer goods companies are navigating the competing pressures of resilient demand and rising operating costs in the United States. According to Reuters, net sales increased by four per cent to $23.28bn in the quarter ended September 30, surpassing analysts' average estimate of $22.80bn, according to data compiled by LSEG. The company also recorded a 2.4 per cent increase in sales volumes, while prices rose by approximately 0.4 per cent during the period, suggesting that higher sales were driven largely by increased volumes rather than significant price adjustments. Demand for beauty products remained a key contributor to the performance, with consumers continuing to purchase higher-priced hair-care products despite pressure on disposable incomes from rising living costs. However, the stronger sales performance was accompanied by a decline in profitability margins, underscoring the difficulty of translating revenue growth into improved earnings when input costs are rising. P&G's core operating margin fell by 80 basis points during the quarter, despite achieving 250 basis points in productivity savings. Get Toiletries The savings included efforts to streamline its supply chain under its new Chief Executive Officer, Shailesh Jejurikar. The company is facing increased expenses across several parts of its operations, including the procurement of raw materials, energy consumption and the transportation of finished products to retailers and consumers. Higher fuel prices have driven up freight costs for packaged-goods manufacturers, while a shortage of truck drivers on some routes has added to transportation pressures, a P&G spokesperson told Reuters. US retail diesel prices reached a record $6 per gallon in September following the US war with Iran and have remained elevated, increasing the cost of moving goods across the country. The resulting pressure on logistics expenses has become a growing concern for manufacturers and other businesses that depend heavily on road transportation and extensive distribution networks. The broader commodity price environment has also created uncertainty for companies across several industries, including consumer goods manufacturers and airlines, as volatility in oil prices feeds into fuel, production and transportation costs. P&G said it was negotiating with suppliers and optimising transportation routes to contain the impact of higher expenses while continuing to invest in product innovation. However, the extent to which these measures can offset the projected $1.4bn cost impact remains a key concern for the company as commodity inflation is expected to become more pronounced in the coming quarters. Chief market strategist at B. Riley WealthArt Hogan, said companies were increasingly struggling to transfer higher input costs to consumers without affecting demand. He attributed the pressure on profit margins to rising commodity prices and businesses' limited ability to pass on additional costs through higher selling prices. The challenge is particularly significant for consumer goods manufacturers, which must balance profitability with affordability as households become more cautious about spending. Although P&G's latest results suggest that demand for some essential household and personal care products remains resilient, sustained increases in food, fuel and other living expenses could encourage consumers to switch to cheaper alternatives or reduce spending on higher-priced products. Get Toiletries For manufacturers, this creates a difficult operating environment in which input costs continue to rise while opportunities to increase prices remain constrained by consumers' purchasing power. P&G's decision to maintain its fiscal 2027 forecast indicates that the company is not yet revising its full-year expectations despite the higher projected cost burden. Nevertheless, its warning that commodity pressures are expected to intensify over the next two quarters points to continued uncertainty over the outlook for margins and profitability. The company's shares rose approximately two per cent in premarket trading following the results, suggesting that investors responded positively to the stronger-than-expected quarterly sales despite the warning over rising costs. The performance places P&G among major consumer goods companies confronting the challenge of sustaining growth and protecting margins in an environment characterised by volatile energy prices, higher freight expenses and persistent pressure on household budgets.