Procter & Gamble‘s fortunes in China are changing for the better.
Results for the conglomerate’s third quarter of fiscal 2026, which ended March 31, show SK-II, which previously dragged on the company’s beauty results, was up 18 percent globally and up 13 percent in the geography, said Andre Schulten, P&G’s chief financial officer, on a call with Wall Street, adding that the last three quarters have shown “very good progress.”
“The fundamental reinvention of the China model all the way from go-to-market portfolio, communication model, innovation model, I think is starting and is continuing to pay dividends,” Schulten said.
The company’s shares were up nearly 4 percent to $150.15 in mid-morning trading.
The challenges are still there, with Schulten acknowledging that Douyin and online are the only growing channels and consumer confidence is still low. “The positive side of China is the consumer is very discerning and the consumer is very engaged in our categories. And when we deliver through superiority, they are willing to go there. And that’s why SK-II was up.”
Overall, beauty net sales were up 11 percent, nearing $3.9 billion. Organic sales were up 7 percent, with hair care performing particularly well in Europe. Personal care sales were up high-single digits “driven by margin growth, favorable geographic mix and pricing,” while skin care benefited from “favorable premium product mix and a volume increase,” a statement from the owner of Pantene, Olay, Ouai and Tula said.
Overall net sales hit $21.2 billion, representing a 7 percent rise.
The company maintained its guidance for the fiscal year’s sales growth, between 1 percent and 5 percent. Core earnings per share were $1.59.
