Dear External Business Partners:

P&G released its second quarter earnings on Wednesday, April 24, 2025. During the January through March quarter, P&G reported net sales of $19.8 billion, a decrease of two percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased one percent versus the prior year. Diluted and core net earnings per share were $1.54, each an increase of 1% versus the previous year. Operating cash flow was $3.7 billion, and net earnings were $3.8 billion for the quarter. Adjusted free cash flow productivity was 75%. More details are provided in the chart below and in the press release here.

We expect the volatility we are experiencing to continue — driven by input costs, currencies, consumer, competitor, retailer and geopolitical dynamics, and now tariff impacts. Our approach in the face of this near-term volatility is to protect the long-term health of our brands by safeguarding our investments in innovation and demand creation. We are adjusting our fiscal year guidance in accordance with this approach. We anticipate an organic sales growth of approximately 2%, core EPS growth of 2% to 4%, and 90% adjusted free cash flow productivity. This long-term focus on the strength of our brands, business and categories is the best way to position ourselves for stronger growth when the economic climate and consumer confidence improves.

Now is the time for investment in the execution of our integrated growth strategy – portfolio, superiority, productivity, constructive disruption and an agile, empowered and accountable organization. We have proven through the years that offering superior products remains the key to dealing with the volatility we face; therefore, we will double down our focus on innovation, superiority and productivity. To fuel these investments in superiority, we will continue to accelerate productivity in all areas of our operations as well as to mitigate cost and currency headwinds. To enable this strategy, we count on our business partners who play a fundamental role in each of these areas. We need all of you on this journey as we seek to change, adapt and build new ideas, technologies and capabilities to extend our competitive advantage – together.

Given it’s Earth Month, I would be remiss if I did not touch on environmental sustainability which is one of the four focus areas within our Integrated Growth Strategy. At P&G, we seek to deliver Environmental Impact at three levels: reducing our own impact, enabling consumers to reduce their impact when they use our products, and scaling industry-wide solutions that reduce environmental impact.

This is only made a reality through the collaboration within our supply base. Our supply ecosystem is critical to enabling P&G to deliver on both superiority and sustainability, without compromise. We do so by holding our Supply Base to very high environmental and social responsibility standards. P&G has made tremendous progress in reducing our Scope 1&2 while Scope 3 upstream materials remain the biggest challenge for us and the entire industry.

We know that further innovation and a higher level of collaboration will be required to meet the needs of the future, and we are acting upon it. For example, we are helping to grow supply of low-carbon materials in the market by formalizing agreement with key business partners for joint value creation. These partnerships will help us reduce a significant portion of our CO2 emissions over the next decade through advanced technology solutions. While we will eventually address additional materials, beginning with the most significant areas allows us to build momentum and expand our efforts effectively.

Another area of focus has been around helping our suppliers reduce their own carbon footprint. We share our own Carbon footprint progress, methodologies and experience enabling all of you to learn and reapply best practices found here. We have also developed a data-sharing platform (called “GreenChain”) based on industry-standard methodology to facilitate and reduce complexity of carbon footprint data gathering so that you can spend less time on reporting and more time on developing solutions. With this enhanced data sharing, we can work towards more meaningful solutions that drive real impacts.

To close, I cannot reinforce enough the strategic importance of our collaboration – to deal with current volatility and for a more sustainable future, together. Thank you again for your partnership and support.

Ana Elena Marziano
Chief Purchasing Officer

*See P&G’s investor website (www.pginvestor.com) for P&G's full Q2 earnings release issued January 22, 2025, the associated webcast presentation, definitions of non-GAAP measures and reconciliation to the most closely related GAAP measure, as well as cautionary information on forward-looking statements, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.