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Pepto Bismol manufactured by Procter & Gamble is displayed on the shelf of a grocery store on July 28, 2023 in Greenbrae, California.
Justin Sullivan | fake images
Procter & Gamble On Wednesday it reported quarterly earnings and revenue that beat analysts’ expectations, thanks to growing demand for household staples like toilet paper and laundry products.
The company’s shares rose 3% in premarket trading.
Here’s what the company reported for the quarter ended December 31 compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: $1.88 vs. $1.86 expected
- Revenue: $21.88 billion vs. $21.54 billion expected
P&G reported net income attributable to the company in the fiscal second quarter of $4.63 billion, or $1.88 per share, up from $3.47 billion, or $1.40 per share, a year earlier.
Net sales rose 2% to $21.88 billion. The company’s organic revenue, which excludes currency exchanges and divestitures, increased 3% in the quarter.
P&G’s volume grew 1% during the period. The metric excludes prices, making it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen weaker demand for its products after several years of price increases.
The company’s child, feminine and family care division recorded the largest increase in volume, with a 4% increase. P&G gave credit to its family care and feminine care brands, which include its Charmin, Puffs and Tampax products. But sales of organic baby care products fell to the low single digits as fewer parents bought Pampers diapers.
P&G’s personal care segment, which includes Gillette razors, saw a 2% volume increase in the quarter. The company said innovation drove the volume increase.
The company’s fabrics and home care division recorded a volume increase of 1%. The segment includes Tide, Swiffer and Cascade products.
P&G’s healthcare segment, which includes Pepto Bismol and Oral-B products, reported stable volume.
Only P&G’s beauty division saw volume decline in the quarter. The company said volume for its hair care products declined in its Greater China market, and its skin care segment, which includes Olay products, saw a decline in global volume. Overall, volume in the company’s beauty division fell 1%.
P&G also reiterated its guidance for fiscal 2025. It anticipates core net earnings per share in a range of $6.91 to $7.05 and revenue growth of 2% to 4%.
