Procter & Gamble Co. (NYSE:PG)

The financial data over the periods from June 30, 2020, through June 30, 2025, reveal several noteworthy trends in profitability, cost management, and income components expressed as a percentage of net sales.

Gross Profit and Cost of Products Sold

Gross profit margins demonstrated some variability, initially increasing from 50.32% in 2020 to a peak of 51.39% in 2024, with a dip observed in 2022 and 2023 reaching lows around 47.43% and 47.86%, respectively. Correspondingly, the cost of products sold increased significantly to 52.57% in 2022 but subsequently declined towards approximately 48.6%-48.8% in later years. This indicates a temporary rise in production or procurement costs in 2022, followed by efficiency gains or improved pricing strategies leading to better margins.

Selling, General and Administrative Expenses

These expenses decreased substantially from 28.18% in 2020 to a low of 25.21% in 2022, suggesting improved administrative efficiency or cost control measures. However, there was a rebound with expenses rising again to nearly 27.7% by 2024, before slightly reducing to 26.9% in 2025, indicating some variability but a general maintenance of expenses below initial levels.

Operating Income

Operating income as a percentage of net sales remained relatively steady around the low 22% range, fluctuating slightly between 22.07% and 24.26%. A notable increase occurred in 2025 to 24.26%, which may reflect effective management of costs in conjunction with stable gross margins.

Non-Operating Income and Expenses

Interest expense increased from 0.66% in 2020 to a peak of 1.1% in 2024, suggesting higher borrowing costs or increased debt levels. Interest income fluctuated but showed growth toward 0.56% in 2024 and 2025. Other non-operating income net values varied, peaking around 0.81% in 2023 and declining sharply to 0.18% in 2025, contributing to overall income volatility outside core operations.

Earnings Before Income Taxes and Taxes

Earnings before income taxes mirrored the operating income trend, remaining fairly consistent between 22.3% and 23.9%, with the highest value in 2025. Income tax rates slightly increased over time, from 3.85% to 4.87% as a percentage of net sales, indicating either higher taxable income or shifts in tax policies.

Net Earnings and Earnings Attributable to Shareholders

Net earnings showed minor fluctuations but a generally stable performance, ranging between 17.7% and 19.06% of net sales. Earnings attributable to Procter & Gamble (P&G) and those available to common shareholders followed a similar pattern, with a slight decline post-2021 but rebounding toward the end of the period. This stability suggests consistent profitability and shareholder returns throughout the timeline.

Special Charges and Dividends

A one-time indefinite-lived intangible asset impairment charge appeared in 2024 at -1.6%, indicating a non-recurring write-down that impacted profitability measures that year. Preferred dividends remained steady just below 0.4%, reflecting stable obligations in this area.

Overall, the data illustrate that while facing some temporary cost pressures and a notable impairment charge, the entity maintained a solid gross margin and operating income profile. Cost management experienced improvements but with some fluctuations. Profitability measures remained relatively stable, supporting a consistent return to shareholders amid slight variations in interest and tax expenses.