Overall net sales decreased 1% year over year to $21.7 billion, but organic sales, adjusted for currency, acquisitions and divestitures, increased 2%, according to a company press statement.
The first quarter results also showed that the grooming division posted solid profits, highlighting the need for product differentiation and adaptation to regional market trends in the cosmetics and personal care division.
Beauty department performance
P&G’s beauty division faced a 2% decline in organic sales during the quarter, with mixed results across different subcategories. Hair care, one of the core beauty sectors, showed slight growth in North America, Europe, and Latin America.
These gains can be attributed to favorable product mix and increased demand for premium products, reflecting the continued trend of consumers choosing high-quality, performance-oriented hair care solutions. However, these improvements were offset by lower volumes in Greater China, where market challenges continue to weigh on growth.
Personal care products in the beauty field performed well, with organic sales increasing in the low single digits. This is primarily due to a favorable combination of innovation-driven volume growth and premium products.
According to a P&G media statement, the division’s success highlights the importance of continued product innovation in driving consumer preferences, especially in competitive markets where differentiation is important.
Meanwhile, the skin care division faced major challenges, with sales down more than 20%. The significant decline was due to lower sales of the super premium SK-II brand, the mainstay of P&G’s skin care portfolio.
SK-II’s performance reflects broader market trends, as consumers in key regions such as Greater China change their purchasing behavior, impacting demand for premium skin care products. P&G’s experience with SK-II suggests that companies in the beauty industry may need to reevaluate their strategies in the super-premium category, especially in regions facing economic slowdowns.
Growth in the grooming sector
While the beauty division faced headwinds, P&G’s grooming business performed well, with organic sales up 3% year over year. Innovation continued to be a key driver of growth in the sector, particularly in premium grooming products, with growing consumer demand for cutting-edge technology and performance evident.
For manufacturers and suppliers in the personal care sector, this growth demonstrates the continued importance of product differentiation, particularly through innovations in performance and user experience.
However, P&G also noted that an unfavorable geographic mix slightly suppressed the division’s overall profits. Despite these challenges, the company remains optimistic about the future growth of its grooming division. The company is focused on leveraging new technology to develop superior grooming products, and we expect the momentum to continue.
Strategic focus and industry impact
John Mueller, P&G Chairman, President and CEO, emphasized the company’s long-term strategy for sustainable growth in the face of market challenges. “We remain committed to our integrated growth strategy of a product portfolio focused on the consumer category, where performance is key to brand choice, superiority across product performance, packaging, brand communications, retail operations, consumer and customer value. “Productivity, constructive disruption, and agility.” and a responsible organization,” Moller said in a P&G media statement.
This strategy aligns well with current trends in the beauty and grooming sector, where innovation, sustainability and premium product positioning are becoming increasingly important.
For manufacturers and suppliers of cosmetics and personal care products, P&G’s first quarter results offer valuable lessons. Despite the volatility in certain regions and product categories, P&G’s performance highlights the potential for growth in areas where innovation and product differentiation are priorities.
The mixed performance in the beauty sector and the challenges faced by super-premium SK-II brands in particular highlight the importance of adapting to changing local market conditions and consumer preferences. Meanwhile, steady growth in the grooming sector reflects continued consumer interest in high-performance and technologically advanced personal care products.
Outlook for 2025
P&G remains optimistic about its outlook for fiscal 2025, maintaining guidance for organic sales growth of 3% to 5% and total sales growth of 2% to 4%. The company expects to overcome the challenges posed by currency fluctuations and divestitures while continuing to deliver innovation-driven products across key categories.
For the beauty and grooming sector, P&G’s performance confirms the importance of focusing on product innovation, premium positioning and adapting to local market trends to drive sustainable growth. As the industry continues to evolve, manufacturers and suppliers can look to P&G’s strategy for insight on how to navigate complex market conditions while focusing on product excellence and consumer value. .
