US Markets
Tuesday, July 30th, 2024 1:48 pm EDT
Key Points
- Volume Increase After Price Hikes: Procter & Gamble saw its volume increase for the first time in over two years, indicating a recovery in demand despite prior declines due to widespread price hikes.
- Mixed Financial Results: The company reported adjusted earnings per share of $1.40, surpassing the expected $1.37, but net sales of $20.53 billion fell short of the anticipated $20.74 billion. Overall, net income decreased compared to the previous year.
- Outlook and Segment Performance: For fiscal 2025, P&G forecasts core net earnings per share between $6.91 and $7.05 and maintains a revenue growth outlook of 2% to 4%. However, the beauty and baby, feminine, and family care segments struggled, with a 1% decline in volume.
Procter & Gamble (P&G) reported mixed quarterly results, highlighting a significant development with an increase in volume for the first time in over two years. Volume, which excludes pricing, provides a clearer view of demand and had previously stagnated or declined due to the company’s extensive price hikes across its product range. For the fiscal fourth quarter, P&G reported a net income attributable to the company of $3.14 billion, or $1.27 per share, down from $3.38 billion, or $1.37 per share, a year earlier. However, excluding certain items, adjusted earnings were $1.40 per share, slightly surpassing Wall Street’s expectation of $1.37 per share. Despite this, net sales were $20.53 billion, slightly below the expected $20.74 billion, remaining essentially flat compared to the previous year. The company’s organic revenue, which excludes factors like foreign currency impacts and acquisitions, grew by 2%. P&G’s overall volume increased by 1%, driven by stronger demand in its grooming, health care, and fabric and home-care segments, each seeing a 2% volume growth. However, the beauty and baby, feminine, and family care divisions experienced a 1% decline in volume, impacted by reduced demand for premium products like the SK-II skin-care line and diapers. Looking ahead, P&G expects core net earnings per share for fiscal 2025 to range from $6.91 to $7.05 and maintains its revenue growth outlook at 2% to 4%. Despite these forecasts, shares fell 4.6% in premarket trading, reflecting investor caution.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/30/procter-gamble-pg-q4-2024-earnings.html
