Procter & Gamble (P&G) has released its first quarter results for fiscal year 2026, reporting a 3% growth in net sales to $22.4 billion. The company’s beauty category, which includes brands such as Olay and SK-II, was a strong performer, with a 6% increase in net sales. The grooming sector, which includes brands like Gillette and Venus, also saw a 5% growth in net sales. The Japanese skin-care brand SK-II was a major contributor to the company’s growth, with a 12% sales increase. Additionally, Olay’s serum body wash, launched in July, was also a success.
P&G reported strong gains in China and Latin America, with a 7% increase in Latin America driven by Brazil and Mexico, and a 6% increase in mainland China. The company’s CFO, Andre Schulten, attributed the success in China to the right interventions in innovation and go-to-market capabilities. Despite the gains, P&G announced plans to streamline its operations in fiscal year 2026, including reducing its workforce by up to 7,000 non-manufacturing roles, or 15% of its current non-manufacturing workforce.
The company maintained that a 1-2% price increase across its portfolio in the US market, announced in July and effective in September, was driven by innovation. Organic sales rose 1% in North America during the first quarter. Schulten noted that consumers are willing to trade up to premium products, and that the value equation is attractive for consumers in the US. The company’s premium products are seeing significant growth, with the majority of growth in some channels coming from the premium end of the lineup.
Looking ahead, P&G maintains its outlook for full-year 2026, expecting an increase of 1-5% compared to 2025. The company’s strategy to focus on innovation and premium products appears to be paying off, with strong growth in key markets and categories. However, the company’s decision to reduce its workforce may have a significant impact on its operations and employees. Overall, P&G’s first quarter results suggest that the company is on track to meet its full-year targets, despite some uncertainty around tariffs and market trends.