Procter & Gamble’s (P&G) net sales grew 1% to US$22.2bn in the second quarter of the 2026 financial year, in what the company described as a “challenging” environment.
Organic sales which strip out currency exchange impacts, as well as acquisitions and divestures, were flat.
The personal care giant, which owns Olay and Herbal Essences, said in a statement that a 1% increase from higher pricing was offset by a 1% decline in unit volume.
Beauty was a bright spot, with sales up 5% on a net basis and 4% organically.
Within beauty, hair care organic sales increased in the mid-single digits, which was driven by volume increases and innovation-driven pricing in Latin America and Europe.
However, this was partially offset by an unfavourable geographic mix.
Skin care organic sales increased in the low single-digits, which P&G said was due to favourable premium product mix and pricing, primarily in Greater China.
This was partially offset by volume declines.
Mid-single digit growth in personal care was down to innovation-driven volume growth and pricing in North America, which was partially offset by negative impacts from geographic mix.
In grooming, sales were flat as innovation-driven pricing, primarily in North America and Europe, was offset by volume declines.
“Our results in the second quarter keep us on track to deliver within our fiscal year guidance ranges for organic sales growth, core earnings per share (EPS) growth, and adjusted free cash flow productivity in a challenging consumer and geopolitical environment,” said Shailesh Jejurikar, President and CEO of P&G.
“We have confidence in our plans to deliver stronger results in the second half of the fiscal year.
“We remain committed to our integrated growth strategy and are excited by the opportunity ahead to reinvent P&G and create the CPG company of the future, delivering long-term balanced top- and bottom-line growth and value creation.”
P&G maintained its outlook for growth of between 1% and 5% for the full fiscal year.
The company previously warned of a slower quarter due to the US government shutdown.
In a call with investors discussing the Q2 results, P&G’s CFO Andre Schulten said the company anticipated it would be the softest quarter, and that it remains confident that stronger growth will be in the back half of the 2026 financial year.