Bottles of Tide laundry detergent, a product of Procter & Gamble, are displayed for sale at a pharmacy on July 30, 2020 in Los Angeles, California.
Mario Tama | Getty Images
Procter & Gamble on Friday reported mixed quarterly results as the consumer products giant grappled with rising commodity prices and warned it expected “significant headwinds” to continue into fiscal 2023.
The Cincinnati-based maker of products including Pampers, Pantene and Tide said higher prices in the fiscal fourth quarter offset a decline in sales volume that it attributed mainly to pandemic-related lockdowns in China and reduced operations in Russia.
The company’s shares fell about 4% in premarket trading.
Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.21 adjusted vs. $1.22 expected
- Revenue: $19.52 billion vs. $19.4 billion expected
For the three months ended June 30, P&G reported net income of $3.05 billion, or $1.21 per share. In the prior period, it reported net income of $2.91 billion, or $1.13 per share.
Net sales rose 3% to $19.52 billion.
In both the healthcare and tissue and home care divisions, organic sales rose 9% at higher prices despite flat and negative volumes respectively.
Speaking to the media, P&G Chief Financial Officer Andre Schulten said he was confident “the consumer is behaving well” as the company raises prices. He attributed flat and negative volumes to the decline in business in Russia.
For its fiscal 2023, the company said it expects organic sales to grow 3% to 5% and earnings per share to be flat at 4%. P&G expects headwinds of $3.3 billion due to exchange rates, higher commodity costs and higher freight costs.
Read the full earnings release here.
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