Beauty has powered an increase in sales at personal care giant Procter & Gamble (P&G), amid price rises due to US tariffs and a restructuring of the business.
Net sales reached US$22.4bn in the first quarter of the 2026 financial year, a rise of 3% on the same period last year.
Organic sales which strip out currency exchange impacts, as well as acquisitions and divestures, grew 2%.
Of that rise, half was driven by higher pricing and half from favourable mix, the Herbal Essences and Olay owner said in a statement.
P&G confirmed that it would hike prices in July due to US President Donald Trump’s trade tariffs.
“Our organic sales growth, earnings and cash results in the first quarter reflect strong execution of our integrated strategy,” said Jon Moeller, President and CEO of P&G.
“These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment.
“We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority – across product performance, packaging, brand communication, retail execution, and consumer and customer value – productivity, constructive disruption, and an agile and accountable organisation.
“We are increasing investment in innovation and demand creation to improve value for consumers and drive category growth.”
Within beauty, organic hair care sales increased in the low single-digits, driven by volume increases and innovation-driven pricing in North America and Europe.
This was partially offset by unfavourable geographic and product mix, the company said.
Personal care organic sales increased in the high single-digits “due to innovation-driven volume growth and pricing in North America, partially offset by negative impacts from geographic mix”.
Meanwhile, organic skin care sales increased by mid-single-digits, which the company said was “due to favourable premium product mix and higher pricing primarily in North America, partially offset by volume declines”.
P&G’s grooming segment grew 3% in the three months from July to September due to innovation-driven pricing, primarily in North America and Europe, and volume growth.
This was partially offset by unfavourable product mix, the company added.
Sales in the health care division were up 1% on an organic basis, while in both the fabric and home care and baby feminine and family care segments, organic sales remained flat.
Restructuring update
Full-year guidance for the 2026 fiscal year was maintained in the 1% to 5% range.
Moeller told investors on a call discussing the results that the second quarter will be the softest quarter of the year for growth, with stronger growth in the back half.
He said that the impact of tariffs on the business over 2026 is now $400m – an improvement on the previously expected $800m
In June, the consumer goods giant said it would slash 7,000 jobs – around 15% of its global workforce – over the next two years
In an update on its progress, Moeller said: “We are right now perfectly on track on all elements of the restructuring execution.
“We now have constructive plans in every business around the world on which roles to reduce and how to organise ourselves with the vision of creating a more agile and faster executing, better executing, organisation for the future.
“We have now reviewed all brand, country and category combinations to ensure that we can add value, and in those where we found that we cannot add value, you see us changing the business model or reallocating resources.”
Changes include shutting down manufacturing in Pakistan, discontinuing laundry bars in India and the Philippines, and exiting several low-tier oral care products in some enterprise markets, he said.
P&G is also focusing the Olay brand on the most productive European markets, as well as streamlining its Braun device portfolio and focusing on enterprise markets.
Related content:
-
Procter & Gamble confirm US price hikes due to tariffs and names new CEO
-
Unilever Q3 growth bolstered by strong beauty ‘power brands’ performance
-
Unilever to review 200 leadership jobs to eradicate ‘pockets of mediocrity’
-
Nivea-maker Beiersdorf downgrades 2025 sales outlook amid skin care slowdown
- L’Oréal Q3 sales miss expectations as CEO gives update on Kering and Armani deals