US Markets
Friday, April 19th, 2024 2:13 pm EDT
Key Points
- Procter & Gamble reports mixed quarterly results amid challenges in regaining shoppers after two years of price hikes across its product range.
- Despite a 3% increase in prices compared to the previous year, the company did not implement any nationwide price hikes during the quarter, although it raised its full-year earnings growth outlook.
- P&G’s fiscal third-quarter earnings per share of $1.52 surpassed analyst expectations, while revenue fell short at $20.2 billion against an expected $20.41 billion. Despite a 1% rise in net sales and 3% growth in organic sales, quarterly volume remained flat for the second consecutive quarter.
Procter & Gamble faced a challenging quarter marked by mixed results as it grappled with efforts to regain consumer traction following substantial price hikes across its product portfolio. While prices surged by 3% compared to the previous year, the company asserted that no nationwide price increases occurred during the quarter. Despite disappointing sales figures, P&G revised its full-year earnings growth outlook upwards. However, this optimistic forecast did not prevent a more than 1% decline in the company’s shares during morning trading. The reported earnings per share of $1.52 surpassed analyst expectations of $1.41, yet revenue fell short at $20.2 billion against an expected $20.41 billion. P&G’s net income for the fiscal third quarter amounted to $3.75 billion, up from $3.4 billion a year earlier, with net sales climbing 1% to $20.2 billion. Organic sales, excluding acquisitions, divestitures, and currency fluctuations, saw a 3% increase. Notably, despite this growth, quarterly volume remained flat for the second consecutive quarter, a trend P&G aimed to reverse in fiscal 2024. The company attributed volume declines in certain segments like health care and baby, feminine, and family care to higher prices and a subdued cold and flu season. While three divisions experienced volume growth, others struggled, with China’s softer demand and geopolitical tensions impacting sales in certain markets. In the U.S., P&G’s largest market, volume grew by 3%, suggesting stable consumer behavior despite price increases. P&G raised its full-year earnings growth expectations and projected a $900 million benefit from favorable commodity costs, marking a shift from previous years when such costs necessitated price hikes.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/19/procter-gamble-pg-q3-2024-earnings.html
